Australian economy strong but concern grows over Europe
Friday, Dec 30, 2011 Filed Under :Planet Talk Instant News
Australia's economy is expected to remain relatively stable in 2012, but there are concerns European financial problems could derail growth prospects.
Speaking to the Business Spectator, ICAP senior economist Adam Carr described Europe as "the elephant in the room", claiming that the economy's ongoing success hinges on the success of Europe.
"We have the strongest private demand in a few year in a third quarter, driven by business investment and strong household spending," he told the newspaper. "If things flare up there (in Europe) it could be a horrible year. Unfortunately we just have to wait and see."
Despite this optimism, there are growing concerns about the strength of Australia's housing market, with confidence falling as repossessions continue to rise.
Recent figures from the Supreme Court show that the state of New South Wales has seen a 22.5 per cent increase in repossessions by banks.
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