Opportunities Down Under seem to be proliferating at a rate that will help the “lucky country” beat out troubled Spain this quarter as the world’s twelfth largest economy, as reckoned by GDP. Certainly its budget seems paced to return to a surplus in fiscal 2012.
Bloomberg reported Wednesday that according to national statistics from both countries, Australia’s $1.379 trillion economy will probably outpace Spain’s $1.386 trillion GDP in Q3.
In January, the International Monetary Fund (IMF) projected that Australia would still lag Spain’s GDP by $3 billion by the end of the year, but the country looks set to beat that—particularly since Australia holds a top debt rating from all three major agencies. Spain, in contrast, holds the lowest investment-grade rating of Baa3 from Moody’s. One more downgrade and it would be considered junk.
“This is a nice microcosm of the structural shifts in the global economy away from the old developed core to the emerging and peripheral part of the global economy, in Asia particularly,” said Richard Yetsenga in the report. Yetsenga is head of global markets research at Australia & New Zealand Banking Group.