The happy and wealthier households of Australia

After 18 months of wealth destruction caused by the Global Financial Crisis, the average household should be seeing a rebound, and signs are it will only get better.

New Government data showed that the financial wealth of the average household stood at just over $38,000 at the end of the June quarter, a nine per cent increase compared with the previous quarter.

This was the largest quarterly increase in nearly four years.

However, Treasurer Wayne Swan says Australians must not be complacent. Mr. Swan, currently in the United States for the Pittsburgh G20 Leaders Summit, met US Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke this week and discussed the GFC and its aftermath.

Still, Commonwealth Securities economist Savanth Sebastian said the pick-up in wealth could be expected to continue.

"Equity markets have rallied by over 50 per cent in the last seven months and CommSec expects a sustained recovery in wealth over coming quarters," Mr. Sebastian said in a research note.

"Importantly, the pick-up in business and consumer confidence will help to support activity and spending levels in coming months."

This elevated prosperity in contrast to much of the developed world may have contributed to the results of a recent survey, conducted to find the world’s happiest cities by policy advisor Simon Anholt and market researcher GfK Custom Research North America. Second only to the winner Rio de Janeiro, Brazil, is Sydney, Australia. Known for balmy weather, friendly locals and an iconic opera house, Sydney fared well in the survey because of its association with a popular brand – Australia.

Rounding out the top five are third-ranked Barcelona, Spain, which Anholt calls "the classic Mediterranean city"; fourth-ranked Amsterdam, Netherlands, and Melbourne, Australia. "People know it's in Australia, and that it's full of Australians," says Anholt. "Therefore, it must be fun."

The data Anholt provided for the list is part of the 2009 Anholt-GfK Roper City Brands Index, released in June. The research was compiled through online interviews with 10,000 respondents in 20 countries.

All in all, it helps explain why Australia is the preferred destination for so many skilled immigrants, tourists and young internationals on working holidays!