Australia cushioned from drastic global crisis

Reserve Bank of Australia (RBA) assistant governor (economic) Malcolm Edey said despite forecasts that the Australian economy would slow down next year, it should be cushioned from the global crisis because of:

• the impending $10.4 billion stimulus package provided by the government,
• the central bank's move to cut back interest rates to increase consumer spending; and
• the slide of the Australian dollar against major currencies.

"All of these factors will help to cushion the effects of the much more difficult global environment in which we now find ourselves," Mr. Edey told delegates to the Australia and Japan Economic Outlook Conference 2008 in Sydney.

Mr. Edey said central banks and governments have been implementing a variety of rescue plans aiming to help to stabilise conditions. However, it is likely that the Australian economy would still slow further in 2009.

There have been concerns recently that the Australian Minister for Immigration and Citizenship, Chris Evans, may have to cut back the record levels of skilled migrants in the 2009 Budget in response to the slowing economy. As a result, potential migrants to Australia are urged to process their applications before the Government makes any changes to the migration quota.

The Minister increased the migration quota this year by 31,000 to reach a record 190,300 visas for Australia, which included 133,500 skilled visa migrants.