Australia an “embarrassment", says economist

Australia an “embarrassment", says economist
By admin


Australia must “stop the pendulum” of overtaxation if it is to truly benefit from the Asian century, according to economist Clifford Bennett.

Bennett told delegates at ATEC Meeting Place in Sydney that Australia is “really pricing itself out various markets” at the moment.

Australia must start to think of itself as part of Asia, he warned.

“In Asia, we are an embarrassment and an underperformer,” he said. “We’ve had the worst economic performance of our region.”

A tactic of raising rates has backfired on Australian economic growth.

“What we did by raising our rates was kill off the nurturing of a recovery that was taking place post-GFC,” he said.

Bennett predicted that the Australian economy would “get worse before it gets better” but was confident that it would continue to benefit from the resources boom.

“The resources boom is not over,” he insisted, with demand for iron ore in China continuing to grow.

Bennett predicted a “second wave” of economic growth in China, along with a resurgence in the economic strength of Japan which he described as the “only soft spot” in Asia.

“Japan will be restating its nuclear programs and there will be a sigh of relief in Japan,” he forecast.

Australian tourism stands to benefit from the growing prosperity in the region, Bennett added.

“It’s going to mean a lot more travel time,” he said. “In Beijing, people seriously want to get out of there, if for nothing else but to breathe fresh air.”

Meanwhile, Bennett projected the Australian dollar would peak at around 1.17 or 1.18 over the coming years.

Latest News

  • Aviation

Low-cost Indian carrier SpiceJet continues to burn cash

It’s not just low-cost Australian carriers that are facing hardship. SpiceJet, India’s version of Bonza, recently announced a 72 per cent reduction in its net loss versus last year. But, despite this improvement, the airline has posted losses for six straight years. But it has secured board approval to raise up to INR 30 billion […]

  • Attractions

SAKA Museum recognised in TIME magazine’s World’s Greatest Places 2024

AYANA Resort Bali’s newly-opened cultural and events centre, SAKA Museum has been recognised in TIME magazine’s World’s Greatest Places list for 2024. Part of AYANA Bali’s resort destination, the museum integrates Bali’s rich history with state-of-the-art facilities, making it the centrepiece for the island’s spiritual and cultural heritage. TIME magazine’s inclusion of SAKA Museum in […]

  • Cruise

Silversea taps Barbara Biffi as senior vice president for global sales

Ultra-luxury and expedition cruise travel brand, Silverseas, has announced Barbara Biffi as its new senior vice president of global sales. Biffi joined the company in 2007, holding numerous positions and gaining a deep understanding of the brand, the preferences of its guests and its strategic goals, the company said. An Italian national with a wealth […]

  • Technology
  • Travel Agents

Amadeus welcomes FCM Travel as new reseller partner of Cytric Easy

Cytric Easy, the travel management tool embedded in Microsoft Teams, is to be integrated into FCM Travel portfolio. Amadeus and FCM Travel have extended their Cytric distribution agreement to include Cytric Easy. With this new agreement, global travel management company FCM Travel, becomes a reseller of the innovative travel management collaboration solution embedded into Microsoft […]