Why did Australia avoid recession for 29 years until COVID-19? (loans, percentage, interest)

[sundestroyer]

Australia is set to take a hit from this pandemic-induced recession but I always heard that they were recession proof during the 08' recession. What has changed this time?

[MrRational]

Originally Posted by sundestroyer

Australia ...but I always heard that they were recession proof during the 08' recession.
What has changed this time?

What have the Australians you've asked this Q told you?


Offhand though I'll suggest it's likely related to their OVER population issues and those costs & effects...
just like all other western nations.

[TimAZ]

Originally Posted by sundestroyer

Australia is set to take a hit from this pandemic-induced recession but I always heard that they were recession proof during the 08' recession. What has changed this time?

Tourism and coal exports funded everything quite nicely until recently.

[Thatsright19]

Google search says they tracked China’s rise with exports of natural resources, for fuel and food.

[beachmouse]

It's also been profitable for them to educate China's future business class- Chinese students from affluent families made up a pretty large percentage of enrollment at many Australian universities, pumping a lot of money into those local economies.

[Teak]

Originally Posted by sundestroyer

Australia is set to take a hit from this pandemic-induced recession but I always heard that they were recession proof during the 08' recession. What has changed this time?

The hit might not just be from the pandemic, but also from the argy-bargy their government has been having with China. As beachmouse mentioned above, many rich Chinese sent their children to Australia for education and the Chinese have been cutting back on that due to the governmental argy-bargy and anti-China rhetoric.

Here is just one aspect of the shift in country relations: https://foreignpolicy.com/2020/07/22...-policy-china/

And another: https://www.scmp.com/week-asia/polit...ian-businesses

I find the South China Morning Post to be one of the better and more interesting online newspapers to read, especially for Asian and SE Asian news and features. Read it before Beijing changes it because SCMP is published in Hong Kong and the new security law apparatus will start controlling the media like it does on the mainland.

[roadwarrior101]

I read that they survived the great recession of 2008-2010 because they already had stricter housing laws vs here in the US and largely avoided risky loans, speculation and other causes of the financial collapse.

[SWFL_Native]

robust natural resource expansion

[mysticaltyger]

Originally Posted by happily retired

immigration policy that required you to have cash amounts so the government did not have to support you -

wish USA would take a look and implement the same or similar policy

To the bolded, me too.

[Aussiehoff]

Originally Posted by sundestroyer

Australia is set to take a hit from this pandemic-induced recession but I always heard that they were recession proof during the 08' recession. What has changed this time?

Nothing changed. No nation is recession proof.