Thursday, April 3, 2008
After 17 years of economic growth Australia is facing a less certain future as fears grow that a recession in the US will drag others into its vortex.
AUSTRALIA now has a 20-25 per cent chance of falling into a recession over the next 18 months, according to a leading economic forecaster.
Goldman Sachs JBWere is tipping the global economic slowdown will combine with an expected flurry of negative corporate earnings over the next few months to push the economy towards a hard landing. Only hours after US Federal Reserve chairman Ben Bernanke, the world's most powerful central banker, admitted for the first time the US was on the verge of a recession, Goldman Sachs JBWere chief economist Tim Toohey yesterday rated a recession in Australia a 20-25 per cent possibility.