No global recession?

Prime Minister John Howard declared there would not be a world recession. As the reverberations of sharp stock market falls around the globe were still being felt, some might think this is a big call. Indeed, some economists argue the world is already on the brink of recession.

Japan leads an almost clean sweep of Asian economies with negative growth, all experiencing the worst conditions for half a century. The Russian economy shows no signs of correcting itself and Latin America is the latest victim of the global financial contagion that had its origins in Thailand last year.

As in the United States, the economic fundamentals are strong in Australia. Our growth has been strong and interest rates are at 30-year lows. As long as the U.S. keeps its economic head above water, there is hope the world will not slip into recession. But if the Japanese continue to avoid taking the necessary harsh measures and the Russians are left to flounder alone, the prospects are not good.

-- The Courier-Mail, Brisbane, Australia