13 Oct 2008

Minister says Australian economic stability will save Pacific from full impact of credit crunch

4:15 pm on 13 October 2008

The Australian Secretary of Pacific Islands Affairs, Duncan Kerr, says the strength of the Australian economy bodes well for the economic security of the Pacific.

He says recent IMF reports show the strength of the Australian banking system should insulate the Australian economy, and in turn the Pacific, from the full brunt of the worldwide credit crunch.

Mr Kerr says this is good news because a resilient Australian economy in the face of a global financial crisis is also a positive for the Pacific.

He says small island states across the world are vulnerable to external shocks and the implications of this have recently been seen in soaring energy and food costs.

Mr Kerr says one of the best ways Australia can ensure a stable and secure Pacific is by continuing to be a strong economic pillar in the region.