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Australia Hasn’t Had a Recession in 25 Years
Article

Australia Hasn’t Had a Recession in 25 Years

This Is What the Rest of the World Can Learn


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Editorial Rating

8

Qualities

  • Innovative
  • Eye Opening
  • Overview

Recommendation

Australia’s most recent recession occurred in 1991, predating Bill Clinton’s presidency and Donald Trump’s first bankruptcy. Journalist Matt O’Brien explains why. A major factor behind all this good fortune has been China, with its strong demand for Australia’s rich store of natural resources. But exports to China don’t tell the entire story. There’s another, less obvious reason for Australia’s economic robustness that other nations might want to emulate. getAbstract recommends this brief but illuminating article about how the economy Down Under has managed to avoid going under.

Take-Aways

  • Australia has not experienced a true recession since 1991.
  • Exports of natural resources to China are a major reason for Australia’s prosperity, but they are not the whole story.
  • Australia’s central bank has been adept at targeting a 2% to 3% average inflation rate over time and adjusting its interest rates accordingly.

About the Author

Matt O’Brien is a reporter for The Washington Post.