US economy holds Australia's interest

Written By Unknown on Rabu, 07 November 2012 | 11.50

AMERICA'S economic ills hold the greatest implications for Australia, according to academics examining the closely fought US presidential race.

Professor Bates Gill, CEO of Sydney University's US Studies Centre, said he was slightly pessimistic about America's near-term economic prospects.

"It's possible that America could grow itself out of this, but the economy could continue to be a drag and for Australia that's a real concern in the near term," said Prof Gill.

He said that despite President Barack Obama's re-election, both sides of politics faced extreme difficulties without a serious mandate.

"Both face continuing divisive politics, a divided Congress and a divided America, quite frankly," he said.

Prof Gill said the US was still the biggest investor in Australia, by a factor of five.

"So don't write us off as your economic partner," he said.

David Weisbrot, professor of legal studies at the centre, warned: "If the US economy tanks any further it could have a deep effect on Australia."

He said he was concerned that Republican austerity plans, including cuts to budgets and government programs, could deepen the US recession.

Experts felt there was little difference between the two sides on defence and foreign policy, but an Obama win was probably more in Australia's interests.

The Obama team had put more time into thinking through the importance of the Asia-Pacific, said Prof Gill.

"So you can have a higher degree of confidence that Obama will keep America's focus here and see Australia as a key ally," he said.


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