In what turns out to be good news for those of us interested in property investment, the International Monetary Fund has reiterated Australia’s economic superiority over other advanced nations, in its recently released October 2012 World Economic Outlook.
Australia’s economy is still forecast to grow by 3.3 per cent in 2012 and 3 per cent in 2013, despite the continued global turmoil with ongoing instability in Europe and less than favourable conditions in the United States.
We have recently become the 12th largest economy in the world up three places over the last few years.
In the past five years Australia’s economy has surpassed the economies of South Korea, Mexico and now Spain.
Our economy has grown around 11 per cent since the end of 2007 while the US has grown only around 1¾ per cent and many European countries are still substantially smaller due to the massive recessions they have suffered.
Inhabiting a place among the top dozen largest economies on the planet is particularly impressive when you consider that we have only the 51st biggest population.
We have the enviable combination of solid growth, low unemployment, contained inflation, sound public finances and an enormous pipeline of investment in resources that’s delivering greater economic capacity and export volumes.
This is all good news for us as property investors, because our strong population growth plus the long-term wealth of the nation, (who can afford to own good properties) will underpin the health of our property markets and ensure that we don’t have the property bust that some of the doomsayers in the blogosphere are still predicting.
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