RBA Governor Links Commodity-Linked Countries in Speech
Australia and Canada have much in common and will likely come out of this global recession as stronger nations, said Reserve Bank of Australia Governor Glenn Stevens in a speech given in Sydney. In his speech titled "Australia and Canada - Comparing Notes on Recent Experiences," Stevens said that each country will "come through this episode in reasonable shape." Of course, a big portion of both Australia's and Canada's growth prior to the global recession was due to surging exports. The global slowdown has brought such this trend to a halt. Fortunately, since Australia's export base is driven by iron and coal, it may stay comparably afloat. Evident by the losses that China's industrial output has recouped, the Asian country's economy is expected to pickup and continue to demand larger portions of Australia's iron ore and coal along with Canada's oil.