strong AU growth question (1 Viewer)

[Rickdog]

hi
could somebody please explain why australia's economic growth was so good during:

1) the asian economic crisis in 1990s

2) global downturn in early 2000s

thanks

 

[seremify007]

grr i thought i posted here but obviously it didn't work...

in short;
1) 'coz we weren't that dependent on them for FDIs and for our export markets... is my guess.

2) aust was criticised in 2000 for relying too heavily on primary "old" industry... but then after the dot com bubble burst... we had something tangible/solid... whereas alot of the tech companies had inflated values with few assets.

 

[Cityboy]

We are a crops and rocks economy and the dot com buuble bursting didn't affect us too much.

As for the Asian crisis, we survived by finding other markets such as Japan, as at that stage Japan wasn't accepting US or European beef due to mad cow disease, meaning that we barely lost any trade at all and for the future made some new and strenghtened some old trading partners.

 

[Rickdog]

did the low $AU have anything to do with it or not? (2)

 

[seremify007]

Umm... That wouldn't really have helped us apart from making sure our exports remained competitive. Can't think of any other reason why it would have an effect.

 

[Cityboy]

Lower exchnage rate helped a lot as it made our products cheaper overseas, compared to the US and Europe who weren't suffering as much as the Asian nations, allowing us to gain a price advantage over these nations and the ability to export was stregthened

 

[seremify007]

I don't think it would be a major contributor would it? I thought our detachment from these countries and our large variety of trading partners was what helped us alot.