Australia (PRWEB) September 06, 2012
The mining industry has received most of the positive press for the recovery of Australia, especially Western Australia, from the global financial crisis. While Australia’s resources and ability to export them to Asia have driven a lot of the economic recovery, statistics show that individual Australian households have helped by adjusting their spending habits.
According to a data from the Organisation for Economic Cooperation and Development, in 2003, the Australian household savings rate was less than zero. They begin to rise, but 2008 put a crimp on savings. Since then, though, savings have gone up, and the savings rate in Australia is now 9.6%. For a point of comparison, that rate is 4.3% in the US, and it is only 3.3% in Canada.
Currently, Australian debt-to-disposable income is 134.5% according to statistics from the Reserve Bank of Australia. This rate, however, looks much better when compared to the rates in Britain and the US, where it is over 160%. Mortgage statistics in Australia are encouraging, too. Only 1.5% of Australian mortgage holders are in delinquency, while that number is 7.6% in the US.
Many of the positive statistics are credited to spending less money and making better buying decisions. During the global financial crisis, Australians decreased their spending. Only this year has it returned to the standard of about 3% a year.
David Domingo, CEO of Members Alliance, feels that his observations confirm the statistics: “We’ve definitely seen a lot of belt-tightening in households as a result of the global financial crisis. We’ve seen a lot of people working to reduce debt and increase savings. In Australia, we’ve been fortunate to be somewhat insulated from the rest of the world, but a lot of the credit for the statistics still has to go to the individual households that have shown increased financial responsibility as a response to a fluctuating economy.”
Domingo continued, “We have been more fortunate in Australia than they have in a lot of countries. The mining industry has helped immensely, especially in Western Australia. Unemployment numbers haven’t been nearly as bad here as in other parts of the world. We still have our share of problems, such as increased utility costs, and the relative sluggishness of the housing market, but overall, Australians are doing a great job of keeping their heads above water.”
Domingo summarised: “There are still plenty of challenges, but Australians have weathered the storm a lot better than people in other countries have. While a lot of people in other countries are still focused on getting back what they had before the crisis, Australians are almost there. Australians now have the relative luxury of being able to focus on creating wealth through investments again.”
Members Alliance Australia provides a one-stop solution to your financial needs. Their services include financial planning, wealth creation, debt conversion, debt reduction, and property investment management.
For a consultation or for more information about the company, you may visit the Members Alliance website: http://www.membersalliance.com.au/about-us/testimonials or you may talk to one of their finance experts at 1300 365 731.