Position of strength

The top ranked advanced economy

Australia has emerged from the global recession ahead of the pack, recording the best economic performance of any advanced economy in 2009.

In a year in which the global economy endured an unprecedented decline in GDP in the post‑war era, the Australian economy grew by 1.4 per cent, whereas advanced economies collectively contracted by 3.2 per cent.

The shallower downturn has meant that Australia has largely avoided the business failures and large‑scale employment losses that have occurred in many other countries, providing a solid foundation for recovery.

A resilient labour market

At a time when most other advanced economies were shedding jobs, the Australian economy created 225,000 jobs in the past year alone.

Australia's unemployment rate peaked at 5.8 per cent around the middle of 2009. By contrast, unemployment rates rose sharply across the advanced economies, and hit double digit rates in both the United States and Europe.

This remarkable performance is a testament to the resilience of the Australian people in the face of the worst global downturn in 75 years.

A strong fiscal position

Australia has far lower debt and deficits than the major advanced economies, and will be the first to return to surplus.

Australia's strong economy and sound fiscal position leave us in a position of strength to invest in health and hospitals, skills, infrastructure and renewable energy, and bring the Budget back to surplus as soon as possible.

By reprioritising spending and exercising restraint, the Government is delivering major long‑term reforms — in tax, health and infrastructure — while still maintaining a fiscal position that is the envy of the world.