Economic Update December 2012

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Running Time: 6:52

Date: 01/12/2012

2012: not a great year, but no recession, no inflation breakout, and no interest rate increases - it could have been worse!

When the economic history of 2012 comes to be written, says resident economist Professor Neville Norman of Melbourne University, it will be seen as a NO year: no recession, no boom or bust, no inflation breakout, no interest rate increases - and no early Federal election, despite the political tensions. Economic activity was sluggish and the rate of growth half our longterm average. It was, in fact, the fifth year of a global financial slowdown, which Australia did not escape entirely. The exchange rate stayed at dizzying heights - great for Australians spending overseas, but tough for exporters or exposed industries like inbound tourism. So what about 2013? Professor Norman's detailed predictions in next month's program.