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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 (2334)
CNBC (7 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?
GamingTV (14 days ago)
@Marie Nimo very simple, declining populations such as japan it means they'll have more stable job markets because they don't have a higher population rate than their job market rate, cheaper healthcare, housing market is more affordable, more money is in their pockets, not to mention the productivity is through the roof, the japanese is far more productive than our american counterparts
Marie Nimo (14 days ago)
@GamingTV how do countries with decelerating populations and economies happen to be in a better position?
GamingTV (14 days ago)
china, japan, germany, the UK, sweden, canada, france, south africa,
Marie Nimo (15 days ago)
Norway and Sweden?
Theo Thistledon (1 month ago)
Many are calling for more money to be spent on welfare. I've seen homeless people which I never saw before. We are in a recession. Things are not good here compared to 30 years ago. A senator here is struggling on 200,000 to maintain a family. Our costs here are very high.
Hong Zhou (20 hours ago)
Why? China.
Womb Raider (8 days ago)
Hahahaha! You're trying to tell us that a bunch of poor immigrants help the economy! That is hilariously bogus!
Edwin Wan (9 days ago)
Australia also has universal healthcare, not that it has anything to do with this topic, but just to mention it out there for the Americans.
Ben Chesterman (7 days ago)
Doesn't benefit the majority in Australia
Zeeshan Niazi (9 days ago)
Because China was pushing their economy.
Cheng-En Wu (10 days ago)
I wonder if this is sustained by Australia's exports of famous Hollywood stars such as Russell Crowe, Hugh Jackman, Mel Gibson, Nicole Kidman, Margot Robbie.... lol
Francis Lim (11 days ago)
Thanks to the great leadership of John Howard and Peter Costello,Australia economy did well for 12 years until when those young and ignorant voters decided it’s time for a change,instead voted for Kevin Rudd who later send the economy back into the red again.Hopefully,this kind of scenario doesn’t happen to Singapore or else all those years of hard work and earnings would disintegrate with the island vulnerability.
DINESH (11 days ago)
They have kangaroos that's why
Mad Max (14 days ago)
The real estate meme
Adam Vasconcellos (14 days ago)
no recession for australia? goldman sachs: hold my beer
Dennis Miller (14 days ago)
verum (14 days ago)
Australia also doesn’t take in illegal immigrants .. don’t get me wrong they work there ass off but end up driving the minimum wage down going to the ER for checkups and hurt the middle class.
Zohirul Islam Jewel (15 days ago)
Explanation begins at 3:06.
Jshift4Lo (15 days ago)
Money can be made in a recession and people to take advantage of.
DONNIE ATWELL (15 days ago)
They seem to not share the same foolish pride as my fellow Americans do.
Zertex Z (16 days ago)
Because they didn fight no war 🤣.
Justin Fencsak (17 days ago)
Who was that hot lady in the interview on CNBC on squawk box with the brunette hair I wanna bang her
Teh Mu Jin (17 days ago)
Because China has been buying Australia export in the last 30 years. But I think China should buy elsewhere due to Australia is American poodle.
Powerslide Inc. (18 days ago)
This video is propaganda and the title is a complete lie.
Andre D. (8 days ago)
Immigration has nothing to do with GDP growth....Production is related to GDP growth... Immigration is directly linked to the wage stagnation as immigrants come in larger numbers than the production rises.... Also, the housing prices in Australia are at a super high level due to the great demand created by large Immigration numbers. This is not an anti-immigration sentiment or racist beliefs...it is just a very simple fact....
Kim Lau (19 days ago)
When you start a civ 5 games where most of your island is desert tiles, but a lot of them are ore tiles.
Govind kamath (19 days ago)
La Fe del Rico PLAY (22 days ago)
The wonders of a single race countries. The mixture model lllke the one of USA is failing. Fotunately we all know where every single race belongs to..!
La Fe del Rico PLAY (13 days ago)
I mean the percentage of non-European inmigrants is very low and in your case I can see your skin is white so less of a problem for them!
Faustinus Karyadi (14 days ago)
You are wrong. Australia actually accept many immigrants from South East Asia like Indonesia born Chinese.
ラップせラン (27 days ago)
Now with the current government we will have a recession... The Liberals have pushed our country into record amounts of dept...
Chris Lu (29 days ago)
Unfortunately it appears the Australia is on its way to recession
Ric Ferr (1 month ago)
Ahhh don't worry !!! It will hit the island like a hammer soon it will be a pizza paste , do not worry !!
Tess Peng (1 month ago)
I just wonder this video is made by Australian rather by American journalist with thorough study and investigation based from the amateur narrator in speaking speed and somehow some accents. But the RECESSION isn't shown up on the table. And you can sniff the majority of people kind tight in money expense down under no different than any other developing countries except of those economic refugee countries.Again, everywhere is the same. It is the matter of the time OZ will be in recession ....STF
Amed Sayed (1 month ago)
Because they don't have FED. FED created this rigged game and Bernanke is one of the biggest criminal
Amy Coronakes (1 month ago)
Erm.. we had a recession in 2008. I’d suggest getting your facts straight.
spazo222 (26 days ago)
No we didn't
twenlil (1 month ago)
GHINA! GHINA ! GHINA ! Else it would be in a recession by now !
Morrison21 Songwe (1 month ago)
2009 was pretty tough in Ausy. I was in uni at the time. The mining industry was hit and miners raided typical student jobs. I still remember how good it felt when Peter Costello (finance minister at the time) sanctioned the depositing of $900 into our bank accounts. I guess that stimulus plan worked.
New Manchester (1 month ago)
Looks like Australia got it right on everything. One day I will visit that country. Someday.
ROBERT NARDONE (1 month ago)
The Blooming Onion !!
MARCUSAURELIUS (1 month ago)
Australia is 4 times more expensive to live than America! Cost of living and houses are astronomical. Car registration is up around $1000 for a V6. Compared to $43 rego in California. Wages are lower for qualified people in Australia, specialised trades earn more in America that Australia. When I went to America back in 2014 I felt so lied to buy fake news media in Australia, America is soooo much better in terms of living standards for the working middle class, middle class in Australia are on struggle street! .. we are so far from being the lucky country considering it's gradually being sold off to the chinese.
@spazo222 for example say you earn 50k to 60k in AMERICA or Australia you can buy 4 times more in America than in Australia. Most professions earn alot more in America! Engineering, law, medicine, All pay much higher wages than in Australia! Almost double the money! No when you do the conversion rate the yank are massively way out in front in terms of pay rates and buying power!
Ben Chesterman (6 days ago)
@MARCUSAURELIUS ripped off by government 35 yrs , no taxes on retail price or mrsp of cars why the cheap
Ben Chesterman (6 days ago)
@spazo222 because of consertives in government lowered consumpition tax and redtape 6 yrs
spazo222 (6 days ago)
@MARCUSAURELIUS you're deluded. Did you read the article? It may be expensive but it's all relative
@spazo222 just about everything in American is 1/4 The price of what you will pay in Australia there for Americans get alot more for their money! They get a much better deal! It's that much cheaper to live in America it's crazy how bad Australians are being ripped off! Houses, land, groceries, utilities, cars,fuel, wages.
P C (1 month ago)
Canada (exact same kind of economy) is rich because of the US. But its looking a lot less "positive" right now. We could send trump to Aust. You want it? 😃
WICKEDLEE LOOPY (1 month ago)
I guess your too young to remember paul Keating, the resession we had to have......or the retail resession .....oh wait , did you say 27 years....lol
Kunal Mazumdar (1 month ago)
Because Australia is already down under. And when you are already down under, how can you go down further.
MrNameless0shelter (1 month ago)
Aussie is helping trump to dig a hole for themselves... So funny...
Imtiaz Uddin (1 month ago)
Australia Appreciation Post.
harrison wintergreen (1 month ago)
no recession in Australia, but one hell of a housing bubble
Merv Stent (1 month ago)
Australia is already in recession! The Australian Government is lying to it’s Citizens it’s not! 🤬
Johann Brandstatter (2 months ago)
That's what it looks like from the shadier parts of New York City perhaps... If it were true, it makes you wonder how Australia became one of the most expensive countries to live - all by itself and with no outside " help " ? Try to buy yourself a house in Melbourne or Sydney - then we talk again... Google : Paul Keating - The recession we had to have. How's Micky Mouse doing ?
Vlad Razym (2 months ago)
Lol. On 1:35 coins are shown, but its Ukrainian Hryvnya! Thats weird
Julius Tanael (2 months ago)
Australia is on the verge of recession!!
Marcus Versace (2 months ago)
As an Australian this story emphasises Australia mineral wealth as its saviour during the GFC, mining is only around 17% of the economy, instead it was great award winning governance and minimal federal or state government debt by the then elected politicians. Plus very strict corporate and banking compliance laws- companies are required by law to give an additional around 12% of all employees salaries into pensions schemes - which are cash -these cash savings now total over $4 Trillion and growing. The money can not be accessed till retirement or death prior to retirement (estate asset) and are viewed by banks as a persons individual 's asset. or savings
Joseph Dezordi (2 months ago)
Australians are hard working, but have been betrayed by their politicians, who have created a basket case from a continent/ shipping millions of tonnes of resources to China for a few quick $, and then importing Billions of $ of white goods and TVs. heading down the drain with Argentina, not even all the mountains of iron ore and valleys of gold will suffice. Apart from beer and drugs and welfare and milk for China. not much else is manufactured here.
Australian News (2 months ago)
It was the left or Labor that made most of the changes that gave us the economy we have . We were still relying on sheep and wool until Labor was elected in the eighty's . Paul Keating as treasurer and later PM is the brain behind it all. Floated the Aussie dollar. Compulsory superannuation that has been stuck at 9% of a persons wage , CONSERVATIVES J.Howard never raised it . Started the leaders meeting with Asia that now buys all our resources that kept us out of recession. Medicare for all. Deregulated the banks. Privatised the national airline Qantas . Without all the changes we would have missed out on the world economic boom of the ninety's . We would have still been shearing sheep under John Howard and the conservatives.
Keza Nana Fleur (2 months ago)
what do you mean their exchange rate is floating in the air like that...? wow thats an open door for low GDP countries I swear to hush but who says these lovers of Christ are modest? well...a little Christian pessimistic helps in economics for purposes of perfection in job! thank me later
keith tiong (2 months ago)
I thought most Australians dislike China
Juuso Peltoniemi (2 months ago)
What makes you think that?
Mathew Christmann (3 months ago)
I think many spelt Australia wrong. near the bottom comments who has the ego problem kiwis or aussies😊
Habib Osman (3 months ago)
Not every immigrant is the same! Australia is doing a good job attracting the right ones, and fending off the flies.
Basketballfan15 (3 months ago)
Just letting you know theres a bunch of Chinese there good day
J C (3 months ago)
Because aus don’t have blacks.
Invesigator 2 (3 months ago)
Displeased to hear that Australia is doing well because their population is one of the most racist in the western world.
Kevin McMahon (3 months ago)
Australia has and agency called the Australian Prudential Regulatory Authority. Its prime oversight is "Quality of Risk". Banks, Finance Companies, Building Societies (Savings & Loans), Insurance Companies must report of such risk. A bundle of foreign mortgages rolled up into a unit trust is obviously high risk, because they contain delinquent debt. That is why Australia survived the 2008 crash. Inflation has remained under 2.5% for a decade. Current debt cost is about the same. Unemployment has been low. The government has no national debt. Only luxury housing, and some investment properties are in a slump, and the rest are fine. Food is cheap. I would not live anywhere else.
The Mazeシ (3 months ago)
I live in Australia. They dont even teach us what a Recession.. heh
Thomas M (3 months ago)
#MyPresidentTrump #MAGA how is the superannuation system different from our 401k?
Roberto Giménez (3 months ago)
Australia is less corrupt and better regulated than the USA, which also has natural resources, immigrants, etc. Stop avoiding the causes of recession with your neoliberal excuses.
SCSG18 (3 months ago)
So basically Australian Labour Party are the better economic managers
Ben Chesterman (7 days ago)
@kingsley Roberts forgot Bob Hawke late 80s 11% unemployment
kingsley Roberts (2 months ago)
What planet are you on? John Howard was the best leader you've had in many years. When I lived there you had 27% inflation under Whitlem..... Labour!!
rem tromol (3 months ago)
but those scary animals, tho..
Bhavya Ramakrishnan (3 months ago)
Saalo india ke jitna population manage karo fir baat karo.
David Vander Ven (3 months ago)
Yeah this video is garbage
Kira Lee (3 months ago)
Mining exports, Chinese buying Aussie property, asian and european students coming here to study etc. Strong banks and good employment numbers all contributing to this.
E'raan Lue (3 months ago)
One word. Chinese
Chris Miles (3 months ago)
Because shagging sheep is a growth industry? No, wait ... that is New Zealand and Wales ... ok, I have no idea how Oz avoided it.
robertthekingful (3 months ago)
And lets not forget, its cause there are alot of white people!
Invesigator 2 (3 months ago)
Would Australia still be rich without natural resources but had white people living in it?
matonmacs (3 months ago)
0:39 CNBC apparently doesn't know the difference between coal and charcoal
hi itsme (3 months ago)
China, it’s because of China. Saved you 5 minutes of your time
Eric John (3 months ago)
You can't have a recession when your economy sucks to begin with *Rollsafe*
Dynamix15 (3 months ago)
Can’t have recession when there’s no economy
J Lord (26 days ago)
We are the 9th biggest economy on Earth you must believe all those Hollywood lies.
Louis A. McCaII II (3 months ago)
China's most Department nation. Few major cities, about as many people as California.... And they are leaving a few details out about what will impact your ability to collect your pension and inflated real estate... Stamp duty, govt incentive to increase prices or drive that market up...Definitely more to the story, lovely nation but still.
John Seol (3 months ago)
Why would anyone trust CNBC? LOL
J Lord (1 month ago)
I get were your coming from but as an Australian I can confirm it.
Ángel Rodríguez (3 months ago)
Why not?
Mercedes Benz fan (3 months ago)
Australia have bigger problems than economical one. it's called MUSLIMS & FAKE REFUGEES GETTING FREE STUFF FROM THE GOVERNMENT!!!!!!!!
Invesigator 2 (3 months ago)
To hell with white Australians who are perhaps the biggest racists in the western world and sitting on stolen non-European land.
Casius CBU (3 months ago)
as solar wind expound its love towards earth, sun burns and stuff 😀 henceforth throw in sun tan lotion.... danggg bondi beach. awesome Australia 😁
Joseph Geiger (3 months ago)
America went 60 years
MezMakesMusic (3 months ago)
Australia has a close geographical and diplomatic proximity to China
Chris Perkins (3 months ago)
It had no recession because around 1 million kiwis went over to get work and spend money during the recession
Chris Perkins (3 months ago)
John Howard had a surplus 100 billion sitting In The national bank account in 2007 Under left wing Labour democrats Australia now have a bigger debt than America per person. Australia is on the brick of total collapse
Edwin Wan (9 days ago)
Labor brought Australia out of the GFC. Plus the left wing Labor haven't been in government since 2012. Yet the right wing Liberals have built up debt since then. I guess for right wingers, debt is only a problem when a Democrat is in power in the US.
chito ruiz (3 months ago)
I think Veterans should get Tax Breaks not the Rich
Greiguci Wootchie (3 months ago)
With the help of China.
Mauro (3 months ago)
That’s probably because their politicians aren’t as corrupt as ours. Rich greedy people in the land of capitalism, yeah, mmhmm.
Julker S (3 months ago)
No Africans and basically an ethnostate with great weather and great educated people. Basically the Norway of the south.
w23857980 (3 months ago)
And Australia repay China by banning Huawei.
Dominik Gadecki (3 months ago)
2:39 - No country is perfect? Check Poland
Chadwicked B (3 months ago)
All the manufacturing is leaving Austalia!
Tom Sutherland (3 months ago)
Cos China hasnt had a recession in ages. As soon as they do, Australia will.
Dylan (3 months ago)
wrong, not only is it we are the lucky country also the labour party had done alot to make sure our economy stays afloat not the government the LABOUR PARTY! and the liberals have been pushing us backwards. STOP SPENDING LIES, SHARE FACTS
Zeqi Liu (3 months ago)
You tap your backup reserved resource to avoid recession. Not a long term plan.
Tyson Gilbert (3 months ago)
Sounds awesome. I would mostly graze grass when id find what became Australia. It's been ages since I've been there. Oh yeah Australia livers did try and keep me like an angel once which is a Stage of Security measures to procure as God, Lord of earth.
T F (3 months ago)
You have to boom to bust...
D. A. (3 months ago)
So, Australia is credited by China's communism?
NextLevel Journey (3 months ago)
Many Automakers used to have Manufacturing Plants and Jobs thereof, in Australia until THE LAST 5-7 YEARS. Their housing costs are Alarming. But shuRRR... They’re just hunky dory.
NextLevel Journey (3 months ago)
TEXAS population is Larger than the entirety of Australia Texas 2018 = 28,701,845 Australia 18= 25,383,200
Anonymous (3 months ago)
And what??
captivecod (3 months ago)
literally every developed country has a floating currency, i’m pretty sure that can’t be the reason for Australia’s success as it didn’t really work as a ”buffer” for the EU or US😂
pisse3000 (3 months ago)
Meanwhile a record number of single mothers are homeless, young people cannot even dream of ever being able to own a home. Not to mention what they are doing to the to the environment...
Brandon E. Smith (3 months ago)
Central bank... 🙄
Joe Bowd (3 months ago)
The stimulus package was later proven to of hurt our economy witch get conveniently forgotten. We were never in trouble with $50billion dollars in the bank and no government debt at all.
Dan Dabocol (3 months ago)
Yeah good job in making it harder for student visas yet you import Africans who breeds African gangs!
Chris Sanchez (3 months ago)
Their economy is helped by their natural resource of coal...hmmm American government has stifled the U.S. coal industry with their "war on coal". Kudos Australia!
Military Rankings (3 months ago)
Because China
J Lord (1 month ago)
Then how come before China was a power and still feudal Australia was in a gold rush and Melbourne the worlds richest city.