Worldwide economy under pressure
Australia has for some time enjoyed a more prosperous period than most during the credit crunch and the resulting worldwide recession with the government attracting much praise. However, just hours after the UK government announced a reduction in unemployment it has been revealed that the Australian unemployment figure is starting to creep higher and has now reached 5.1%. This is a perfect reflection of the difficulties around the world as the much sought after economic upturn begins to turn sour.
Australia has for many years depended upon its natural resources which prosper when the worldwide economy is performing well and the construction industry is buoyant. The very fact that the Australian economy is turning downwards is a major concern to governments around the world as well as investors. It would appear that economic growth in areas such as China, one of the fastest growing developing economies in the world, is set to stall despite the fact that the authorities are willing to do "anything it takes".
We are also hearing major concerns from the US Federal Reserve with regards to the US economy which would make a short to medium term worldwide economic recovery all but impossible. The short-term direction of worldwide investment markets may well give us an indicator of the potentially difficult months ahead.
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