Australia's economy: The wonder down under

Sydney, Australia.

The U.S. economy may have weathered a storm over the past five years, but that is not the case down under.

“Australia has really been insulated to the grim economic news that we keep hearing from other corners of the world -- thanks in large part to a mining boom,” says Phil Mercer, the BBC’s correspondent in Sydney. The country is benefiting from big demand in China.

Besides their rich natural resources, the Australian government has maintained a policy of economic stimulus. That’s kept inflation and unemployment low.

Mercer says the people there are optimistic about their economic future in the long run too because of the country's location near Asian countries, many of which are on the verge of an economic boom.

And even if Americans don’t pay much attention to the Australian economy, Mercer says Australians are paying close attention to ours. “Many Australians will look to see what’s happening economically in the United States really to gauge their confidence going forward."

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