Australia’s performing economy

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Australia, one of the few countries that parried the hit of the 2008 global financial crisis, remains to be a good country for investing due to its continually performing economy. The current Abbott administration promises to “end wasteful spending” by building “a strong, productive and prosperous economy free from the burdens of debt.” Complementing this assurance is the prestigious AAA rating from the top credit-assessing companies that makes Australia investment-ready. Here are some points that show Australia’s economy as of year-end 2013:


The contribution of SMEs

Records gathered by the SME Association of Australia in 2011 showed that small and medium-sized enterprises far outnumbered large businesses and corporations. The non-profit support organisation revealed in its study that Australia has over 2 million SMEs, a number that equals to 99.7% of actively trading businesses in the country. These kinds of businesses recruit between 5 and 200 employees, with the overall economic contribution indicating that SMEs employ 70% of the Australian workforce.

The organisation also posited that Australia is the second country (next to New Zealand) where it is easiest to start a small or medium-sized business. The study suggested that SMEs are likely to survive in South Australia and Tasmania, with businesses in construction, retail trade, accommodation and food, and manufacturing as the top industries to enter.

Lower bank interest rates

The Abbott administration is able to allay the effects of the decline in the mining industry by convincing the Reserve Bank of Australia (RBA) to cut its benchmark interest rate to as low as 2.5% in August 2013. With this help from the central bank, economic conditions have improved and entered a transition period.

“What we’re seeing is a recovery in the non-mining sector while mining itself hasn’t collapsed,” said Nader Naeimi, head of a portfolio at AMP Capital. Naeimi added: “It looks like we’re going to have a more balanced economy going forward.”

Following the decrease in bank rates, businesses and consumers have shown confidence, resulting in higher household and enterprise-level spending that could extend the country’s over two decades of economic growth. Among the industries that benefited were retail (clothing) and rental; September 2013 data showed that department store and clothing sales spiked up, while house prices improved by 1.9% compared to the April-June quarter.

Investing in the future

With the adaptive fiscal policies of the current Liberal government that result in robust economic growth, Australia is arguably a worthwhile country for investing, especially in the resource and retail industries. The government seeks to create between five and ten million jobs within a decade, which means that Australian work visas will remain a popular scheme among foreigners looking to take advantage of the vacancies.

Supporting the suitably of Australia for investing is the fact that there are visas applicable for this purpose. Two of the visas that National Visas migration agents can assist with are the Business Innovation and Investment visa and the Significant Investor Visa. With these visas, people can establish or manage a business in Australia legally. Apart from these visas, there may be other visa pathways for penetrating several Australian markets—a task that expert migration agents from National Visas can help intending investors with.

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