Australians trust in the national economy but remain ambivalent concerning the future

This media release of 5 January 2011 from Paris-based Ipsos Social Research Institute illustrates that Australians remain ambivalent concerning the future:

Australia confident about economy,
yet worried about cost of living

Three-quarters (74%) of Australians believe that our current economic situation is ‘very good’ or ‘somewhat good’ according to the December 2010 Ipsos-Eureka Social Research Institute’s Global Advisor study. At the same time, one-third of Australians (33%) believe that ‘inflation/cost of living’ is a top issue facing the nation, according to the December 2010 Ipsos-Eureka Issues Monitor.

The Ipsos-Eureka Global Advisor report for December 2010, which draws on a global Ipsos study conducted monthly in 24 countries since April 2007, asks survey participants to rate their own country’s economic situation on a scale of ‘very good’ to ‘very bad’. In December 2010, 74% of Australians rated our economic situation as ‘very good’ or ‘somewhat good’.

Australia’s most recent result compares favourably to the balance of nations surveyed, ranking equal fourth (China also scored 74%) behind India (88%), Saudi Arabia (81%) and Sweden (75%). Japan was least confident, with 6% reporting their economic situation was ‘very good’ or ‘somewhat good’.

The lowest Australia has performed on the confidence scale is 36% (April 2009). However scores have been consistently above 70% for each month in 2010. Established economies, notably the USA and Great Britain, have not recovered so well; with 20% (USA) and 16% (Great Britain) of people in these countries responding that their current economic situation was ‘very good’ or ‘somewhat good’ for the latest survey.

“These most recent Global Advisor results show that Australians continue to be confident in our post GFC economy, while countries like the USA and Great Britain are yet to recover. We are right at the very top among developed countries, and not far behind the leading emerging economies, particularly India and China,” said Ben Barnes, Managing Director of the Ipsos-Eureka Social Research Institute.

“The results also indicate that Australians are able to acknowledge confidence in the nation’s economy even while things may be getting tougher at a personal level. Confidence in Australia’s economy has been consistently above 70% for the past 12 months. In that time, however, we have seen the cash interest rate rise from 3.5% to 4.75%, growing disharmony about fair and equitable banking practices and a federal and Victorian state election where ‘cost of living’ was a major discussion point. Indeed, we have found that one-third of Australians (33%) believe that ‘inflation/cost of living’ is a top issue facing the nation.”

“The insight is that we, as Australians, are confident that the country is heading in the right direction, but have some worries about our own futures within that economy,” said Mr Barnes.

About Ipsos

Ipsos is one of the world's leading survey-based marketing research firms. Founded and run by market research professionals, Ipsos interprets, simulates, and anticipates the needs and reactions of consumers, customers and citizens – locally, nationally and around the world. Ipsos has a direct presence in more than 65 countries globally and conducts research in more than 100.

The Baltimore Sun 19 January 2012:

The world economy will lose momentum in 2012 but it will keep moving in the right direction, according to Reuters polls of around 600 economists who said crisis-hit Europe would drag on global growth…..

Backed by a mining boom, Australia's resource rich economy should lead the developed world in terms of growth, with a hearty 3.4 percent expansion this year.
"The mining investment boom is largely 'baked in' and is expected to contribute two-thirds of GDP growth in 2012," said Paul Bloxham, chief economist at HSBC Bank Australia.