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Australia sets world’s record for longest economic expansion

Australia may beat the world’s records for longest run without going in recession, as last the country reported economy decrease in 1991. Since then, Australia has constant growth of GDP, which is main due to the commodity and agriculture sectors. Despite, the recent decrease in commodity prices, the economy of Australia may continue it uptrend, due to the huge investments of the country into the industry, information technologies and agriculture.

The Reserve Bank of Australia increased its forecast for the growth of economy and certain sectors in the quarter report. According to the it, the economy will growth by 3-4% in 2016, against the previous projected 2.5-3.5%. Meanhwile, the inflation will grow to 2.5%, against 1.5% predicted earlier. The Reserve Bank of Australia consider, that the danger from delay of the Chinese economy, which is the main foreign trade partner of the country, decreased.

“Over the next year, the economy is forecast to grow at close to its potential rate, before gradually strengthening. Inflation is expected to pick up gradually over the next two years”, said the report of Reserve Bank of Australia.

It is expected the economy of Australia to receive stimulus for growth from the continuing high demand for commodities, as well as the increase customer spending, specially in real estates.

Moreover, the Reserve Bank of Australia reported weak employment statistics, as the main negative factor is the growing Australian dollar, which might hamper the diversification of the economy, which is highly dependent from the mining industry.

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