What’s behind the surge in debt in Australia?
The debt crisis in Australia is likely to be the story of the year, writes the former chief economist of the Australian Bureau of Statistics (ABS).
In this interview, Dr Chris Evans, who has worked as a consultant for many financial institutions and has written several books, talks about the reasons behind the economic problems in Australia.
“The Australian economy is in a bad shape, and the Government has been in a pretty bad position for a while,” he says.
Dr Evans, a lecturer in economics at the University of Melbourne, has a PhD in economics from the University, and has worked for the Australian Government, including in relation to its debt and credit policy.
He says that the Government is “running out of money”.
The problems in the Australian economy are partly due to a combination of factors, he says, including the global recession and the introduction of a GST tax, which raises the cost of borrowing in Australia, but also because the economy is “growing very slowly”.
What is the debt crisis?
The crisis started in early 2013 when Australia was hit by a sharp decline in its GDP growth, with the economy shrinking by 2.2 per cent in the year to June.
This is in part due to the global financial crisis.
It has also affected Australian financial markets.
The Australian Government took on $2.4 billion in emergency debt to help deal with the shock.
At the same time, it was forced to pay more than $1 billion in interest on the debt.
Dr Christopher Evans, former chief economic officer of the ABS, discusses why the debt situation in Australia has worsened.
Photo: James Brickwood Mr Evans says that while there is a lot of good news in Australia in the economic situation, the problem is that the debt problems are not going away.
“There are people in Australia who are getting a lot richer, and there are people who are living in poverty,” he said.
The Government is borrowing at a rate of more than 7 per cent, and that is partly because of the global crisis.
The problem is the Government was not doing anything about it.
The current situation is not good for the country Dr Evans says, and it’s partly because the Government does not know what it needs to do to fix the debt problem.
“We are not getting the support we need, because there are not enough resources to deal with this problem, and so people are taking on more debt,” he explained.
“If we had done what we should have done with the financial crisis of 2008, we would have had a more prosperous economy. “
“And we would be doing better in the long term, because we would also be investing in our economy. “
But we have been doing a lot more debt than we need to.” “
And we would be doing better in the long term, because we would also be investing in our economy.
But we have been doing a lot more debt than we need to.”
He says it is not a coincidence that Australia is now in the position it is in now, with a significant number of households and businesses facing severe financial problems.
“It is really hard to get credit, it is really difficult to get mortgages, it’s very difficult to make the investments that are needed, and they are being taken out of the economy,” he added.
He points to the fact that Australians are spending on housing in the most expensive periods of the housing boom, and credit cards are being used to pay off debts.
“People are getting wealthier, and are being able to pay for their housing, and having their credit cards, and mortgages,” he told ABC News.
What is globalisation?
“The global economy has become very dependent on the US dollar,” Dr Evans said.
What has happened in the last year? “
For many of the developing countries, especially the developing nations in Asia, it would be a real challenge to export their products and services,” he continued.
What has happened in the last year?
The Australian economy grew by 1.5 per cent last year, and this has increased the pressure on debt, which is now the biggest problem for Australian society, Dr Evans explained.
The US has been hit hard by the global economic downturn.
Photo by: David Gray “We have been getting an awful lot of debt, and in particular debt for the construction industry, for example, which has been very badly hit by the recession.”
But there are signs that the world is starting to recover.
China is starting a huge construction boom, Dr Paul Johnson, an economist at the Australian National University, told ABC Radio.
“China has just passed the 10-year mark in construction, so the Chinese government is very confident about its economy,” Mr Johnson said.
In October, the IMF said it expected China to grow by about 1.6 per cent this year, while the world’s second-biggest economy, the US, was expected to grow 3.1 per cent.
Dr Johnson said the US was now experiencing a