RBA boss says bad headlines don’t tell the whole story

The Reserve
Bank of Australia’s governor, Glenn Stevens, has said that it’s not all bad
news for the country’s manufacturing sector, and that undue emphasis had recently been
placed on the difficulties suffered by the car industry.

Fairfax reports that Stevens, addressing a House of Representatives economics
committee last week, said Australia could still have a future in “very high-value
manufacturing”, there were positives in the country.

“While undoubtedly this is a
gut-wrenching change in Holden, Ford and Toyota – no question – it is important
to remember other positive stories,” he said.

Stevens
pointed to Boeing’s presence in Australia – its largest outside the US – and its
where it employs 3,000, as well as that of General Electric. There was the potential for more success stories in the country’s industrial sector.

“We can find, I think, as a country a future in parts of very high-value manufacturing … it can be done; it’s not impossible,” said Stevens.

The
Australian
 notes Stevens as saying that the car and airline industries were
exposed to global pressures and had been for a long time.

“I
think what governments can do – mostly what they can do – is try to promote an
overall environment of macro-economic stability, and really the Reserve Bank
plays a big part in that,” he said.

Stevens
said that the RBA expected unemployment to rise but peak in the next year and
then decrease again, and there were signs of improvement in the national
economy.

Image: http://www.rba.gov.au/