Is Australia near the fiscal tipping points of Europe?

Although in Australia the current economic situation may seem bad, it is nothing like as dire are Europe.

There is a new issue. After a long period of surpluses in 2009 the government created significant deficits. These do not seem justified by the small slowdown in economic growth. Any ideas?

Using World Bank Data, many of the Eurozone countries have been running large, structural deficits for years. Australia only went into deficit in 2009.

As a result, Australia’s national debt is small relative to GDP compared with the European nations.

The relative problem can be seen from the growth rates. Australia has yet to go into a full year of recession. That is growth of less than zero.

Neither has growth dipped much below the average for 1998 to 2007.


  1. This particular blog post, “Is Australia near the
    fiscal tipping points of Europe? ManicBeancounter”
    indicates that you know everything that you’re writing about! I completely agree. With thanks -Leonardo

    • manicbeancounter

       /  15/02/2013

      Thanks for the compliment. However, I do not know everything about the fiscal situation in Europe, but do try to put things in context.

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