Quit Worrying About the Economy – Go On Holiday!

The news is good for the Australians – the Federal government wants you to take a break, get to the beach, break open a stubbie and have a holiday!

The Tourism Minister, Martin Ferguson has suggested that Australians take the 121 million days of leave they are owed and take the holiday at home to help kick start the economy.

Lets face it the property industry isn’t helping the economy at the moment. The Australian Bureau of Statistics reports that building approvals dropped 5.4% nationally October despite the RBA cutting interest rates by another 1% in the same month. The drop of building approvals was worst in Queensland with a drop of 26% . In contrast Western Australia had a slight increase of 2.9%.

Other economic indicators are mixed for Australia. There has been a drop of 22% in new vehicle sales but the dramatic drop in the Australian dollar which now buys around US$0.67, compared to the near parity it enjoyed as recently as June, has seen Australia’s largest ever trade surplus. Coal exports are also at record levels

Overall the economy seems flat but the housing industry in particularly seems to be in the middle of a crises of confidence. You wonder for how long though – as the government’s $10.4 billion stimulus package plus the interest rate cuts plus the rush out of the sharemarket – it all points for a bright future for the property scene.

But not just yet: lets face its December, its summer, its the start of the silly season. So take the government’s advice and get out on the beach – just make sure its an Australian beach!

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