Australia's recession risk growing

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SYDNEY, Nov 19 (AFP): Australia is at increasing risk of following other major economies into recession in 2009, a survey released by the Westpac-Melbourne Institute indicated today.
The government has said Australia will experience lower growth and higher unemployment as a result of the global economic crisis but is well-placed to avoid a recession.
However, Europe's largest economy Germany has already fallen into recession and the US, Japan and Britain are on the brink. Meanwhile, growth in China, Australia's largest trading partner, is likely to slow amid the global slump.
The Westpac-Melbourne Institute Leading Index, which indicates the likely pace of economic activity in three to nine months into the future, fell sharply to 1.1 per cent in September from 3.5 per cent in August.
"This is a very disturbing fall," Westpac's chief economist Bill Evans said, adding that the August to September drop was sharper than any monthly fall seen during the last recession in Australia.
"The growth rate is signalling a very weak growth outlook through at least the first half of 2009.