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Why Australia Hasn't Had A Recession In Decades

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America's economic expansion is approaching a big milestone. If the U.S. economy keeps humming until July 2019 it would be the longest period of growth on record. The expansion would be exactly one decade and one month old by then. But there's another country with an even more impressive run. Australia hasn't had a recession in 27 years. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Australia Why Australia Hasn't Had A Recession In Decades
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Text Comments (2066)
CNBC (3 months ago)
Australia hasn't experienced a recession for nearly 30 years. Is there an economy that's better positioned for the next 30 years?
dirk diggler (6 days ago)
because Australia has the biggest private debt in the world. The people are blind forget public debt like Greece +M Cruz
milesanddizzy (1 month ago)
Australia's lack of a recession is simply due to increasing immigration and its effect on GDP, it is in essence an economic house of cards and it is both unsustainable and damaging to it's economic base. That CBNC publishes this as somehow being remarkable is both short sighted and wrong in the extreme. Get better economic correspondents...
wayne stewart (1 month ago)
+David T dip
liabilitymate (1 month ago)
Because the fake "Australian government" is a foreign US corporation, owned by foreign banks, they are all sitting in TREASON against the Constitution & will soon all be in jail its before the courts right now, May 2019, also they are lying we have been in a recession for 11 years they just fix the figures & sell all our assets to China. https://www.youtube.com/watch?v=s9KELCyVZr4&t=174s https://www.youtube.com/watch?v=7gYdo_sZJmU&t=12s
Crow Eater (1 month ago)
When you crash the economy as hard as they did in the early 90s there is only room for growth.
Michaelson Sarmiento (4 hours ago)
The time to buy is when there's blood in the streets and to know when there's value.
MICHAEL DANIEL (8 hours ago)
Australia’s has the highest tax system in the world. Australian property has increased 6500% in the last 50 years like no where in the world. No where in the world has seen an increase as such. Which is very alarming. Pay packets or wages has stayed the same for for past 15 years. Now let’s talk about the conspiracy that the government did to protect itself back in 2008. By allowing hard working Australians to refinance there homes and offered up to $1 million dollars tax free to put it back into super as they knew 2008 was the year that retirees will start drawing on there super after wwii babe boomers and then they increased the retirement age by another 5-10 years to protect the market from falling out. Most people who took the option to redraw on there homes have put themselves back a decade when the stock market fell in 2008. Wake up Australians. Did they mention that Australians have the highest debuts in the world. Nope. Don’t be blinded by all this talk. Our time is coming and AUSTRALIA will hit the wall and it won’t ever come out of it. The only thing anchoring our economy is superannuation because they made it compulsory for all Australians. Hold on my fellow Australians. Don’t believe the hype.
1005332 (2 days ago)
because China
Mac (2 days ago)
Steve Keen would be tearing his hair out watching this
MouZe (3 days ago)
1. Have a huge land mass, with a tiny population 2. Be rich in natural resources. 3. Be in the fastest growing economic region on the planet 4. Become real good buddies with the fastest growing economy on the planet. 5. ?? 6. Profit. When did it become genius to have a lot of land with valueable resources and a rich neighbor ready to buy it all up? The only thing that sets Australia apart from its other neighbors is the fact that it has an educated population ready to exploit its resources and some of the most China friendly legislation on the planet. As long as there is demand from China, Australia will thrive. But that's about it, besides resources what does Australia have going for them? Australia has more in common with banana republics than it does with strong stable and diversified western economies like the Dutch or Swedish.
DB Edwards (3 days ago)
I don't believe you can change the economic cycle.
DJPelio (3 days ago)
1:36 those are Ukrainian coins
SohaiL Rehman (3 days ago)
*Best Country🇦🇺*
James Longstreet (4 days ago)
Do people actually take CNBC headlines as fact? Fact is, Australia's own news station proclaimed on March 7, 2019 that the country is in a recession: "Australia’s economy has just slid into a recession on a per-capita basis" And the Labor Party's economic spokesman says this is the 3rd time since 1991 the economy has gone backwards.
George James (4 days ago)
Great country Australia is!!
Elaine Evans (5 days ago)
Australia is the envy of the world!
niki wiki (5 days ago)
niki wiki (5 days ago)
niki wiki (5 days ago)
At the time of the GFC, The Useful brainwashed idiots threw out JOHN HOWARD and we lost The Best EVER TREASURER PETER COSTELLO, who left the country with billions of $ in SURPLUS, which DUDD RUDD blew on overpriced school halls, unwanted, and pink batts from his brainless belfry, he's only rich because he has a smart wife, pink batts created roof fires killing young improperly trained young men, threw us into debt, which the Liberal Party is getting us out of, after a decade. Julia Gillard was wise enough to put Costello in charge of THE FUTURE FUND, SUPER FOR PUBLIC SERVANTS, which has flourished & grown it better than the CLOWNS of WALL STREET.
niki wiki (5 days ago)
AUSTRALIA has a housing crash every ten years.
niki wiki (5 days ago)
Aussies can't leave the Keys at the Bank Door and walk away like many US STATES.
niki wiki (5 days ago)
CNBC/AU are the MS13NBC, Liars or stupid and ignorant. Thes squeaky voiced female, today about 11 am, Killary Klone in brain, said today The Liberal Party had run a negative campaign, More dishonest or just plain IGNORANT AND LOOSE WITH FACTS, failed to mention the Unions, and The Climate Cult Creeps, SCREAMING GREENS, Get Up (Who get into the Gutter), for the first time in Australia were infiltrated by Nasty US LEFTY Loons and Millions of $s, committed acts of bastardry and violence to the point of blowing up a truck and behaviour too vile to mention, GOT TO BUGGERY, CRIMINAL CNBC AU
tom SHADY (5 days ago)
Murders of all kinds down because they outlawed guns after a mass shooting. No recession because they immediately acted with proven techniques. Low wage growth becaue they are bringing in immigrants who are helping, not hurting their economy... Australia is winning because they are actually DOING the things our experts have been saying to do, since Reagan made a corrupt bargain with Iran to hand him the presidency. Atta boi aussies. You beat us at our own game.
bean fotchott (5 days ago)
Welp, here we go!!
Jude Stingray (6 days ago)
David Browne (6 days ago)
The fact of the matter was that the Australians elected a Labour Government to govern over the period of the 2008 recession. A labour Government to those of you in the US would be like electing the Democrats. They were left a healthy bank balance in the black by the previous Liberal Government. When the recession struck in 2008 the Labour Government went into panic mode. They saw what was happening around the world and began to put government money into funding government programs to bolster the economy. What they did not realise until later was, that given the mineral boom with China, Australia was not affected by the recession. Yet Labour went on a spending splurge which was second only to the Whitlam government in the early seventies. The Australian dollar had climbed to a massive $1.10 US dollars when it is normally around 70 cents US as it is now. That misreading and mismanagement by Labour cost the country its deficit and put it into the red at a time when it should not have happened. People do not forget what occurred back in 2008 and that is why the Labour Party did not win the election which was theirs to win this weekend (May 2019). Even allowing for all the wealth which appears to exist today, I really worry about the amount of debt Australian households have. The way interest rates have been maintained at low levels. The way interest rates do not reflect indexation. The way the money to be made on the stock market does not reflect any of this is of major concern to me. Not wanting to sound pessimistic, I still have to say that I believe the day the House of Cards crashes is drawing nearer and when it does occur you can forget the notion of the lucky country. Home loans would only have to go up 1 to 1 1/2% and 10-20 percent of home owners would crash and burn. That is how bad it is.
Audi e-tron (6 days ago)
I can tell you that the standard of living in Australia has NOT improved in those 27 years.
Angelo Forido (6 days ago)
Could our elections be rigged? Praising our banks which get bail outs . Rothschilds central bank
10percentwierd (9 days ago)
If it weren’t for our strong immigration policy (not Africans) we would be broke in 2019!
christdragon (11 days ago)
I guess the Rothschilds didn't want Australia to have a recession.
Dee Cee (11 days ago)
And corrupt universities
Anime Otaku (12 days ago)
I live in australia
Karna 257 (13 days ago)
You forgot India .
Magpies88 (14 days ago)
Australia also sold out its younger generation with debt and cowboy credit lending! Yahoo !
Nick - (14 days ago)
We have managed to just keep things ticking along by having some of the highest immigration rates in the entire world for a developed country, it's not hard to "grow" in gross terms when you have hundreds of thousands of people coming in for such a small population. We completely blew the mining boom on residential property which produces NOTHING and now have a massive property bubble, sluggish and unproductive economy and have kept interest rates on hold for years while other countries have been raising them. The Australian economy is NOTHING to be envious of.
Sigma Geranimo (15 days ago)
yeah many millionaire from 3rd and 4th world spent there to laundry their money to avoid tax.
Roosi Nus (16 days ago)
:) New Zealand haha
是邪恶的习近平 (16 days ago)
Chinese economy take off ... does that explain the massive wave of Chinese bribery of Australian MP's.
是邪恶的习近平 (16 days ago)
Australia has an economy?
Mr Peco (16 days ago)
@2:10 america too racist to ever consider doing that
Christian Ho (16 days ago)
China Spending Spree in Australia. 3. Gold 2. Iron 1. Baby Formula
Kula Cnt (16 days ago)
Strange how we can also afford a ‘socialist’ healthcare system too hey Seppos?
Renee V (21 days ago)
I would like to know which is it is Australia not having a Housing problem because you have more than enough Internet videos on how bad Australia’s housing market is and this is only been with in the last couple of months so which is it are they not having a recession because of Housing or are they actually having a Housing problem that Australia sees as becoming a recession? And you are the one who are is reporting this! So please help me to better understand because I really do like your programming.
rob taylor (23 days ago)
The GFC in 2008 defiantly did cause a recession in Australia!! The mining sector is the only industry that could survive the GFC unharmed - it was the small businesses and public equity that suffered terribly. stop looking at the mining industry as something that benefits the Australian public in reality rather than just numbers and profit reports that only exist on paper. most of the mining profits are leaked out of the economy !!! There was defiantly a period of economic decline during which most trade and industry activity was reduced, and heavily affected the GDP and wage growth.
Jihad against normies N Furries (24 days ago)
Still I rather live in America than Australia. America > Australia.. Australia is liberal cesspool
ENCRYPT3DBR0K3R (27 days ago)
Joseph Manning (29 days ago)
A prime example that social safety nets are really needed to have a stable capitalist economy.
Ben Chesterman (29 days ago)
Big government is the problem , why we don't build anything anymore
Tony Coz (1 month ago)
The bubble is deflating. Housing prices are coming down and will fall for the rest of 2019.
Ken Roucka (1 month ago)
So, in part, they're economy is strong because they sell fossil fuels to China and partially moved away from public pensions.
SuperChips 1175 (1 month ago)
See: juicemedia
SuperChips 1175 (1 month ago)
Also gas and oil from timor-leste and west papua, your welcome
ON (1 month ago)
You are too kind on Australia. TheJuiceMedia makes you see this country in a whole new way.
Abraham .J (1 month ago)
It's called *Geography*
S Kirk (1 month ago)
Sounds similar to what Yang is trying to do
Abdega (1 month ago)
It’s simple really, because they are upside down, when global trends go down, it goes up for them
Austin Robbins (1 month ago)
Abdega I love this lmao
Noah Kligman (1 month ago)
I thought Australia was fake... JK ;)
Munee Kyunn (1 month ago)
Australia (1.323 trillion USD) has smaller GDP than Texas (1.645 trillion USD) ......another thing worth mentioning is that China would boom regardless we're talking about billions of people at work. China went from 0 to 100 in the past 30 years. From fishing villages to urban and organized metropolises. To say that Australia had a huge impact in this and in helping China grow is absurd. So far China handed out more materials to Australia to build itself than Australia hands out to China, so it's more of a one way highway. The only way China loses money to Australia right now is through it's international students that are forced to pay the amounts before doing the courses. Please stop back-patting and telling lies to yourselves. And housing is horrible in Australia. Worse than anywhere in the West. A family needs two seriously employed adults to keep working for the entirety of their lives with credit cards in debt to be able to afford a family house. Australia might have been a great country before where you could earn money but now it's very much worse and not the case. Especially in the last three years.
Munee Kyunn (26 days ago)
+is that truth lol Australia has smaller GDP than Texas , don't compare to China please and by the way I am Japanese living and working in Australia as an engineer.
is that truth (28 days ago)
I don't mean to offend u i like Chinese people but it's like saying u can have bottle of milk but u have no animals that produce milk
is that truth (28 days ago)
So let me get this straight Australia sells resources to China ,China manufacturers resources, sells back to Australia and rest of the world becomes wealthy and Australia played no part in China's big economy? What joke use your brain Not enough resources=not enough manufacturing to become really wealthy, its very very simple math.
is that truth (28 days ago)
By the way u also need resources for manufacturing that keeps those millions of people in a job. Use your brain Its been good for both countries not just one.
is that truth (28 days ago)
Australia sold China resources to build infrastructure which did help their economy, China sold Australia manufactured rubbish that's now in landfill site a cross australia.
John D (1 month ago)
Every time they say Australia may head into recession the people go out and spend all their spare cash in desperation for a last hurrah and then wake up to better results due to spending spree, repeat this every year for last 27 years.
Hezodon (1 month ago)
Yeah be lucky that’s it folks!the secret!
milesanddizzy (1 month ago)
Australia's lack of a recession is simply due to increasing immigration and its effect on GDP, it is in essence an economic house of cards and it is both unsustainable and damaging to it's economic base. That CBNC publishes this as somehow being remarkable is both short sighted and wrong in the extreme. Get better economic correspondents. Reply
SirSloth (1 month ago)
The higher we climb the harder we fall, is that how this will go down?
Gaming Nation (1 month ago)
Lol India and china has like 7% growth rate and you call 4% high
Winston With A Y (1 month ago)
China is a developing economy. As it increasingly industrialises, it's GDP growth will be much higher than an already industrialised country. Go look at China's GDP growth rate over time and you'll see that as it has industrialised, growth has decreased
Squishy Boi (1 month ago)
We havent had a recession because we trade with a dictatorship that takes our private information... great....
Carlos Sanchez (1 month ago)
Australia is always in a recession, they are just used to the high prices Duh
Citrine Queens (1 month ago)
well being depending on a economy is a recipe for economic crunch
Kalios (1 month ago)
Australia is not lucky at all, we have bad internet, Terroist attacks, to many new comers from Asia Europe etc and way way to many apartments that are so useless if you attempted to live in it and everything is so dam expensive
MOONLIGHT SHADOW (1 month ago)
One word... Asia.
Nemanja Cuk (1 month ago)
Americans can’t find Australia on a map
Damien Pol (1 month ago)
Inconvenient truth - Australia has been run by mostly conservative gov for the last 3 decades. The last recession was under a left-wing gov.
Chris Griffiths (1 month ago)
The Truth about this So Called Non Recessionary Period is that it is Not True for all of the Regions of Australia. So Factually over the Last Thirty years Some Regions of Australia have had Recessions, even Multiple Recessions. Further the Non Recessionary Period Mostly Reflects the Success of Australia's Major Cities, and the Success of Major Cities Globally as a Pretty Good Economic Model.
MrMarcin178 (1 month ago)
So why do we pay so much tax. It’s all bs.
SDFG SDFG (1 month ago)
Correction. Australia is in recession for the last 3 years now.
Andre DS24 (1 month ago)
Without the filipinos it will not be like that
kees staps (1 month ago)
Thanks to the Labor Goverment having a low debt
Madeleine Burns (1 month ago)
Hang on America doesn’t have superannuation
Captainplanet (1 month ago)
For one we don't have political partys allowing corrupt banks to create a subprime mortgage scam that eventually sent the country into recession.
Finn Larson (1 month ago)
S H (1 month ago)
All of you are ignoring the real truth: It's because China has been keeping you guys afloat
is that truth (28 days ago)
So let me get this straight Australia sells resources to China ,China manufacturers resources, sells back to Australia and rest of the world becomes wealthy and Australia played no part in China's big economy? What joke use your brain Not enough resources=not enough manufacturing to become really wealthy, its very very simple math.
Captainplanet (1 month ago)
What could that possibly have to do with the GFC being created by idiotic American politicians thus ruining their economy?
Ross Jon (1 month ago)
Its because Australian Blue Collar Workers Wages have not gone up for 27 years, but the hidden truth is young people can not buy their first home due to over heated house prices so then they are staying home with parents longer and the minority group who are the tradespersons and professionals are making the money so there is a hidden truth so the Blue Collar Worker save their country from hittin' into a Recession but in return gets kicked in the teeth for saving the day for the country.
JOUE BIEN TECH (1 month ago)
Why? because our banks were regulated. We had systems in place to to avoid rampant liar loans and our banks from over extending themselves.
Cian Gargan (1 month ago)
Regulation of banks and industries stops recessions.
Fatty Acid (1 month ago)
Because natural resources and CHINA. Do you really need 5 minute to explain all that? Edit: I watched the video after my initial comment and just want to point out that all things mentioned are not unique to Australia. China and Natural resources are by far the most important and unique contributions to Aussie economy for at least the past 15 years which include the recession and its aftermath.
Ryan VanGelder (1 month ago)
Armenian virgin (1 month ago)
God blessed Australia
Silver Soul (1 month ago)
Australia hasn't had a recession cause their notes are like 71 cents to a US dollar and everything here is expensive af. Like it's almost six dollars per gallon here. It's like 1.4 per litre. A six pack is like 20 dollars. Also they have monopoly money, just like Canada!
niki wiki (5 days ago)
In the mid 70's our A$ was around $1.30 till Twitlam economically vandalised the country and Keating lowered it's value to where it's now, so in US $ housing is not much dearer than the US.
Hugo Gong (1 month ago)
Australia is a pet dog of America.Pet dog don’t need to worry about anything
S. Hindy (1 month ago)
I’m an Australian and I know one thing that we do a lot that other countries seem to not do very well. PLANNING, PLANNING and PLANNING . Australians plan well into the future.
droid4D (1 month ago)
Every great Empire falls
bh lj (1 month ago)
not really. for oz to do well, china and japan have to do well not the rest of the world!!!!
Michael (1 month ago)
Proud Aussie here, I here to tell you that... She'll be right mate
121SeedDestiny121 (1 month ago)
Australia's economy is not a giant economy than China.
The future is Unity (1 month ago)
Its simple, because Australia's economy isn't tied to the west anymore. Western economy is volatile and full of scandals like the one in 2008 financial crisis. Australia has long shifted its stock exchange post from USA to China. China's economy is all about trade and building infrastructures, while the west is about siphoning money from all over the world without actually producing any value.
Vela van laack (1 month ago)
Ya, usually when things keep rising, when it drops, if it drops, there’ll be nothing left. It’s all thanks to large influx of immigrants
Ricky Boy (1 month ago)
It's the small business in Australia that's saving it from recession...
Smiggie balls (1 month ago)
Thanks china
greatidea11 (1 month ago)
Australia doesn't really have a GDP. They are just selling earth's resources to keep up. High wages = High costs and even higher housing costs despite the booming Chinese economy. Australia is all set for a big bubble and upcoming recession
Daniel Hagley (1 month ago)
Australians sold out to China years ago.....China runs this country.
Erik Lee (1 month ago)
Then how come HuaWei cannot participate in the NBN or any defence industry related?
Benevolent (1 month ago)
Australian real estate prices bite people. That may bring a recession
MARCUSAURELIUS (1 month ago)
Australian Labor party (leftist communists traitors) gave money to only lazy people on centre link (dole money) people who do not want work. Those people went out and purchased mainly booze and cigarettes and put Australia into massive massive debt with interest, that is only now almost paid back by the AUSTRALIAN WORKERS! Not the governemnt! The Liberal party is just as bad as Labor these days, both leftist parties that can't be trusted! Both of these parties have sold out Australians to very bad deals and most Australians want them gone in the next election. Australia needs a conservative party to sort out the endless high immigration problem, get out of the UN and scrap the foreign aid give aways to other countries that hate Australians because Aussie workers are paying such high tax to let others live the free life that have never paid 1cent of tax here. Communism is a very bad thing! UNEXIT! Australia has really Super high housing prices and food and utilities/cars are 4 x American prices! E.g new Ford f150 truck cost in Australia $200,000 .. it's ridiculous.
Ben Chesterman (1 month ago)
If a 1ss manual sold in Australia it would cost $77000aud drive away = $16000 less than a 2ss auto would cost here
MARCUSAURELIUS (1 month ago)
+Ben Chesterman a Ford f250 platinum does not cost 90 grand in the USA it's around 45 to 50 grand brand new with all options!
MARCUSAURELIUS (1 month ago)
+Ben Chesterman No your incorrect... The 2018 f150 Shelby is $259,990 on Carsales.com.au All the other prices i listed are directly from advertised prices on Carsales.com.au and only for the Ford f150 range. LOOK IT UP
Ben Chesterman (1 month ago)
+MARCUSAURELIUS the prices you saw is a f250 shelvy cobra supper snake with 750hp for $200,000 aud
Ben Chesterman (1 month ago)
+MARCUSAURELIUS Australia has 13% - 54% tax on cars + rhd conversion costs = $60000 more costs on.a f250 platnuim here . $90000usd in Usa
Sixjac (1 month ago)
Cause the government steals you're money and charge a fortune for the cost of living.
Colonel Cuck Of The Cuckold Army (1 month ago)
They steal our money and spend it on education so we can differentiate between your and you’re.
ch. rough habit (1 month ago)
bcz they have international students for backup economic stand allso
Gaston Phalange (1 month ago)
💬💬💬I wish I had the money and time to go Australia once a year.
Kieran Macdonald (1 month ago)
Its because everytime they need more money they dig bigger holes in the ground to extract minerals. This fixes issues at the time but will eventually will run out. Or China will stop buying.
Potatoes and Tomatoes (1 month ago)
can someone explain to me what means that the currency depends on the the exports and not government agencies? I’m so confused sorry if I sound dumb ..
dominic pelle (1 month ago)
The LUCKY BIT was China growing.. the rest was Labor Party policy looking to the future with Super (Paul Keating) and stimulus (Kevin Rudd) Americans would call this socialist policy. Along with Labor floating the dollar in 83' and of course Labor introduced Medicare for all among many other PROGRESSIVE POLICIES.