Australia can ride out turbulence, says govt

SYDNEY: Australia is well placed to ride out the turbulence caused by fears over the US economy which have seen global stock markets plunge, treasurer Wayne Swan said yesterday.
Swan was speaking after Australian shares plunged 5.1% by mid-session after a rout on European markets overnight was followed by sharp falls across Asia.
“World markets continue to experience volatility as a result of the US subprime crisis,” he said in a statement.
“Uncertainty remains about extent of losses associated with the US sub-prime fallout, which is likely to result in some degree of volatility over the period ahead.
“This has resulted in recent falls in the local share market.
“However, I note we are well placed to ride out the turbulence that flows from events in the US even though we are not immune from it.
“The prospects for ongoing growth in Asia and the developing markets are assisting us to withstand the fallout occurring elsewhere.”
Strong growth in the Asia-Pacific region, particularly in China and India, was driving demand for Australia’s rich mineral and energy resources. – AFP