Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

I thank the honourable member for this question. The government has embarked on a course of action based on early and decisive action to support jobs and to cushion our economy from the worst impacts of the global recession.

I refer the attention of the House to what we had produced in the last week in terms of the most recent consumer sentiment index, which was up 12 per cent in June. This is the largest increase in 22 years. Consumer sentiment is now up 20 per cent since the announcement of the government’s first economic stimulus package in October and, furthermore, the consumer sentiment index is now at its highest level since January 2008. That covers consumer sentiment, but then, of course, we have business confidence, which has also risen. Business confidence for May showed the sharpest rise that we have seen since 1989. It has now reached its highest level since February 2008. Furthermore, we saw other positive economic data in the housing sector, with housing finance growing by 3.5 per cent in April. First home buyers in particular represent an increased proportion of that total amount, indicating that people are responding positively to the trebling of the first home owners boost.

I was asked by the honourable member about the economic recovery—that is, our efforts to support an economic recovery in Australia and to lift Australia from the global economic recession. The data suggests that as of now—while there are still many difficulties lying ahead—Australia is performing better than most other countries during this global recession, the worst in three-quarters of a century. Firstly, on the matter of economic growth, if you look at the data itself, Australia has the fastest growth in the OECD. In the March quarter we saw the following growth in some other economies: Japan, negative 3.8 per cent; the UK, negative 1.9 per cent; the US, negative 1.5 per cent; Canada, negative 1.4 per cent; France, negative 1.2 per cent; Germany, negative 3.8 per cent; Italy, negative 2.6 per cent; and Australia grew in the March quarter by 0.4 per cent. Against those measures the Australian economy is performing relatively well.

On unemployment, Australia on the most recent data has the second lowest unemployment of the major advanced economies: in the UK it is 7.1 per cent; the US, 9.4 per cent; Canada, 8.4 per cent; France, 9.1 per cent; Germany, 8.2 per cent; Italy, 6.9 per cent; in Australia it is 5.7 per cent—still too high—and in Japan it is 5 per cent.

On debt, Australia has the lowest net debt of the major advanced economies. To again go through the numbers: Japan, 103 per cent of GDP; the UK, 56.8 per cent; the US, 61.7 per cent; Canada, 26.2 per cent; France, 65.2 per cent; Germany, 70.9 per cent; Italy, 111.9 per cent; and the major economies have an average of 70.4 per cent of GDP. Australia’s debt is currently forecast to be 4.6 per cent in 2009-10 rising to 13.8 per cent.

On the matters of deficits, Australia has a lower budget deficit than the average of the major advanced economies in 2009. The figures are: Japan, minus 9.9 per cent; the UK, 9.8 per cent; the US, 13.6 per cent; France, 6.2 per cent; Germany, 4.7 per cent; Italy, 5.5 per cent; and their average is 10.4 per cent. Canada is at minus 3.4 per cent and Australia is at minus 4.9 per cent.

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