Strong Australia dollar poses economic threat

Despite defying the global financial crisis, Australia's soaring currency could hurt exporters in the country.

    It's a country that appears to have defied the global financial crisis, enjoying years of consecutive growth and a soaring currency.

    But it's not all "wonder down under" for Australia's economy, and as the government prepares to deliver its budget, there could be tougher times ahead.

    Despite a commodities-fuelled boom, high government spending, the cost of widespread flooding and a drop in corporation taxes mean cuts are likely.

    But out of direct control of the government is Australia's soaring currency.

    For the first time since it floated, recent weeks have seen the Australian dollar worth considerably more than its American equivalent: and that's hurting exporters.

    Andrew Thomas reports from Sydney.

    SOURCE: Al Jazeera


    YOU MIGHT ALSO LIKE

    Survivor stories from Super Typhoon Haiyan

    Survivor stories from Super Typhoon Haiyan

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    We Are Still Here: A Story from Native Alaska

    We Are Still Here: A Story from Native Alaska

    From Qatar to Alaska, a personal journey exploring what it means to belong when your culture is endangered.