Rudd concedes recession possible-By Sid Maher

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--Rudd concedes recession possible  By Sid Maher

August 01, 2008 07:30pm


KEVIN Rudd has conceded that the Australian economy is slowing and that the worst global economic conditions in 30 years could spark job losses and a recession.

With bank lending and retail sales figures slumping to recession levels this week, the Prime Minister also urged banks to pass on in full any rate cuts delivered by the Reserve Bank of Australia, The Australian reports .

Economists are tipping a rate cut, possibily as early as next week, after recent economic data pointed to a sharp slowing in the economy.

The official cash rate, which has risen to a 12-year high of 7.25 per cent, could be cut by as much as 0.5 per cent as the RBA tries to avoid stalling the economy.

Speaking on Melbourne's 3AW radio today, Mr Rudd refused to rule out a recession but argued Australia was in a better position than most other economies in the Western world to ride out the financial turbulence.

Asked if there were more job cuts ahead, after recent layoffs by major corporations including Qantas and Starbucks, Mr Rudd said: “Well, if you've got a slowing economy coming off the back of the highest inflation rate in 16 years and 12 interest rate rises in a row, then the flow-through to growth in the economy and the flow through to employment, one just follows the other.”
from http://www.news.com.au/heraldsun/story/0,21985,24113887-5005961,00.html

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