A confidence boost – Australia has so far avoided a recession in the face of a great world recession

The ABS release on the Australians 2009 March Quarter GDP data shows that the Australian economy defied the world wide recession and grew in the March Quarter. It is excellent news for Australia, Australians and the Australian government. It is a strong boost to the confidence of consumers in Australia.

Irrespective what contributed to that positive growth, Australia was not in a recession. No matter whether one likes the definition of a technical recession or not, one should accept that fact that it was not in recession. One can debate for a better definition for the future use, but so far we have used that definition.

Consumption is an important component of the economy. Consumer confidence is very important to current and near future economy growth. The positive economic growth provides a strong shot in the arm to consumer confidence in Australia. That will be good for the economy and for the welfare of all Australians.

Exports, though world trade collapsed, was a positive factor to the Australian growth, largely due to China factor. Australia has benefited from its close economic relations with Asia and China where the economies have been more dynamic. We Australians should value those economic relations we have with Asia.