The crisis in Australia
Hans Redeker, the current head of BNP Paribas, said that Australia would have to generate 4% of their GDP to meet payments to foreign holders of its assets. The Australian Government will act as guarantor for all bank deposits in financial institutions of the country, AFP reported citing a statement by Australian Prime Minister Kevin Rudd. In the case of bankruptcy of a bank refund of deposit will be made without any restrictions. In addition, Australia will guarantee all short-term debt of its banks operating in the international market.
In the period August - October 2008 the Australian dollar was devalued by 23%, taken to infusion into the economy to 7.3 billion U.S. dollars in order to stimulate consumer demand. Also, the Reserve Bank of Australia has made lowering the refinancing rate.
The fall in equity prices (including the shares of Australian companies) led to significant losses of Australian pension funds.
Reduced demand for raw materials by industry in China, and falling world market prices, adversely affected the mining industry in Australia.
The crisis has also created pressure on the labor market. 25 October 2008 the Minister for Immigration Chris Evans of Australia said that the crisis may be reduced immigration quota for 2009 amounting to more prior to 160-190 thousand. per year with Australian population at 21 million people. However, a few days later, Chris Evans rejected these measures the pressure of companies and trade unions mining state of Western Australia.
In December 2008, the Immigration Department of Australia was a "critical list" of several dozen very short supply specialties, the application for immigration to be considered as a priority.
Despite the negative factors that predicted the IMF and the Reserve Bank of Australia, projected economic growth to 2% in 2009, while most Western economies will be in a recession.