Recession Warnings Are Here Do Not Fall Victim To Financial Hardship

The GFC financial problems continue across Australia with the Gold Coast, Sydney and Townsville really feeling the pinch. The Global Financial Crisis is rocking our shores, and these results keep getting worse were the nation’s worst quarterly slide since Australia’s last recession in 1991 this comes on the back of falling building approvals, house prices and poor retail spending.

Whilst the Australian economy had largely been sheltered from the worst of the global financial crisis, which led much of the rest of the world, including the US and the UK, into recession, the poor start to the year raised fears that our nation may dip into recession – defined as two consecutive quarters of negative economic growth.

Recession fears were further fuelled by the early econimic finacial data for the present quarter which has been soft.

“While the downturn can be largely explained by the disruption to coal exports caused by Cyclone Yasi, it only takes a small fall in output in the June quarter to produce a technical recession. “In short, there is no room for complacency.”

Treasury secretary Martin Parkinson admitted the latest national accounts were marginally larger then he had expected, but said the slump does not change the Government’s strong expectations for growth later this year.

“But there is nothing in the accounts to change our perspective of what will happen next,” he said.

Interest rates

The good news is that the Reserve Bank is now likely to hold on raising interest rates when it meets on Tuesday until the economic situation becomes clearer this means we should witness a furtehr interest rate drop by Melbourne Cup.

The reality is we are witnessing one of the highest enquiry rates ever with many Australians at a total loss their businesses are runningat a loss they can’t meet their mortgage payments and their credit card debt is at an all time high.

We understand that people are hurting from low income, high tax debt, credit card debt and we know we can help you.

Contact Insolvency Professionals today for fast advice.