Strong financial outlook for 2011


Export Finance and Insurance Corporation’s Chief Economist Roger Donnelly predicts strong global growth to continue this financial year – provided the euro crisis doesn’t escalate.

Donnelly explains that while risks related to sovereign debt, competitive currency market manipulation, protectionism and failure to achieve international policy coordination could mount in 2011, they won’t necessarily prevent vigorous global growth.

This is because emerging market economies are now a bigger share of the world economy and are growing quickly, which should offset much of the weakness in advanced economies.

In his view, the biggest risk to the global recovery is an escalation of the euro area debt crisis, which has the potential to cause a renewed global credit crunch.

Although the risks of sovereign debt default within the euro area and of the exit of one or more countries from the currency union have risen, these events are unlikely to materialise in 2011.

The continued rise of emerging markets led by China and India will show no sign of moderating, and the leading emerging market economies will continue to buoy global growth, Donnelly says.

Export Finance and Insurance Corporation
Ph: 02 9201 2197

Related news & editorials

  1. 18.07.2018
    by      In
    3D printing with metals is affecting the way manufacturing occurs, and Australian distributor Raymax Applications reckons this is amply demonstrated by the application of SLM Solutions machines in metal manufacturing processes.
    SLM Solutions Group recently released its fourth generation 280 system... Read More
  2. 16.03.2018
    by      In
    In the 1960s, as much as a quarter of Australia’s workforce was employed in the manufacturing sector, and the industry fuelled 25% of the nation’s economy, according to the Productivity Commission. Half a century on, the closure of Toyota, Ford and then General Motors in October 2017 seemed to... Read More
  3. 24.01.2018
    by      In
    According to Southern Cross CEO, Mark Ferguson, if Australian industry really wants to get serious about saving energy then it needs to take a close look at ‘two-stage’, air compressor technology. As energy costs continue to outstrip other business input expenses it is critical, more than ever... Read More
  4. Martin Chappell
    by      In
    With Australia’s manufacturing industry strengthening, leaders and heads of IT are weighing up which new technologies they should implement to gain a competitive edge. Martin Chappell from Motorola Solutions explains how a simpler and more focused use of data can be the best approach.
    Australia’s... Read More