… in the "Business Services" Category!From Global Partner to Domestic Powerhouse
Australia has enjoyed the benefits of a two speed economy with the mining industry driving the nation’s growth. But as world- wide demand for raw materials slows, the need for stronger small businesses to drive the domestic economy is very real.
Our economy has been blooming. The most important factor has been our proximity to Asia, specifically China, and their seemingly unquenchable need for raw materials.
The rugged landscape has served us well, as the mining industry has profited, leading to our being able to stay clear of the world wide recession plaguing virtually every other G-20 nation.
But recent reports show that China’s desire for our raw materials has slowed, which may cause trepidation for Australians.
China’s GDP slowed 10.3% growth to the June quarter, down from 11.9% to the March quarter. The price of iron ore fell 10% in the 2nd week of July alone.
China’s factories are looking to slow production and cut their inventories which could seriously damage the commodities industry over the next year or so.
So what does this mean for your small business?
First, there is little to be immediately concerned about. Commodity prices are contracted out through September, so there will not be an immediate drop in revenues from that industry.
But now is the time for small businesses all over the country to take the lead, become more profitable and keep Australia in the solid position it’s in today.
Reports issued in the middle of July revealed that Australian consumer confidence is as high as it’s ever been and unemployment is expected to be an incredibly low 4.5% by the end of 2012. This can be seen as a sign that now is the time for small businesses to grow and become a force for prosperity within their communities.
Last quarter was better than expected in Australia, but with China’s growth beginning to slow there may be tougher times around the corner. It’s up to small businesses to find their niche and grow so we, as a nation, don’t have to rely on foreign wealth to create prosperity.
