Australian jobless rate forecast to skyrocket by 2010
Welcome back!
JP Morgan’s Australian chief economist Stephen Walters has forecast the Australian jobless rate to double by the end of 2010 to 9% as over 1 million people are out of work. This would be the highest level since 1994.
Walters forecast comes on the back of growing insecurities surrounding the domestic economies growth rate and the ongoing world slowdown in particular in China.
With China showing signs of a slowing economy from the previous breakneck growth rates in excess of 10% the world slowdown is likely to take a heavy toll particularly on economies like Australia who have leveraged off the Chinese economy.
Walter indicated a that the domestic growth in the economy would fall to 1.4% in 2009 as the growing slowdown in China takes hold.
The grim predictions bode well for further rate cuts as the domestic markets have priced in a forecast 50 basis point cut in the next month or two.
Comments
Leave a Reply