"There is a very serious deterioration in our budgetary situation. Nevertheless, I want to stress that we will bring the budget back into surplus as quickly as we responsibly can, consistent with the election commitments that we've given."
- Tony Abbott, Australian Prime Minister
Under a new government the Australian economy should begin to flourish due to structural reforms, pledged by the newly-appointed Tony Abbott, the Conference Board Leading Economic Index suggests. On Wednesday Tony Abbott has sworn in as the nation's prime minister, saying the government should stark working immediately. His 19-member cabinet, which is one of the most experienced in history, according to Abbott, is going to start their work from the discussion of the carbon tax. Abbott is planning to introduce a direct action plans instead, under which subsides will be spread directly to farmers and companies to reduce their emissions.
Supported by an improvement in the economy and brighter prospects, Australian leading index, which is designed to predict the direction of the economy, climbed 0.3% in July, recovering from a 0.2% drop a month earlier. A measure of current economic activity, however, fell 0.2%, following a 0.1% increase in June. Even though the latest data are indicating Australia is still struggling to gain the momentum due to a drop in mining projects, subdued consumption levels and unemployment rate at a four-year high, new government, and optimism among Australians, the $1.5 trillion economy is likely to recover in the foreseeable future.
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