The Asia Pacific economy is showing signs of recovery from the global recession with a surge in exports in India and China, and Thailand displaying improved resilience on the political and economic fronts.
Australia: Boosted with a fiscal stimulus, the Australian economy, especially the services sectors, are showing signs of recovery. While the nation’s economy is not facing any contraction, experts believe recovery may not be strong. Some key sectors such as housing, automobiles, and industrial equipment received boost from the fiscal stimulus. The real boost, however, is predicted to come from exports to China. With Australia’s key trading partners expected to grow strongly in 2010, rising investments in commodities and natural resource projects are expected to fuel Australia’s recovery. Australia’s public debt is 14% of its GDP. Although Australia’s economy is in good shape than before, businesses are still cautious and may remain so till 2Q 2010. A strengthening Australian Dollar and possibility of further hikes in rates by the Reserve Bank of Australia (RBA) shall also influence the overall economy.