Australia suffering ‘man drought’

Australia’s coastal regions have been hit by man shortages

An analysis of new census figures has shown that Australia is suffering from an unprecedented “man drought”.

The statistics have revealed that there are almost 100,000 more females than males in Australia.

The problem is worse in the coastal cities, where women have moved seeking better jobs and lifestyles, while many men have gone overseas.

Thirty years ago Australia was with flush with men thanks to immigration policies that favoured males.

That position has been reversed because thousands of Australian men in their 20s and early 30s have gone overseas either to travel or to work.

It has caused a gender imbalance that is having far-reaching implications.

Town and country

Major cities in Australia now have concentrated groups of unattached women, along with dwindling numbers of the opposite sex.

Demographer Bernard Salt says the exodus of young men to foreign countries is leaving its mark.

“If you go into the United Arab Emirates census you’ll find there is around 12,000 Australians living in Dubai, mostly male, mostly in the 25 to 34-year age group.

“Here is an example of one country that has drawn out a specific age demographic out of Australia which has contributed to the ‘man drought’.”

But the situation outside of the larger towns and cities is very different.

Vast numbers of women have abandoned the countryside seeking better jobs or education in metropolitan areas. They have left behind communities overloaded with younger males.

In the town of Glenden in the northern state of Queensland there is one single female for every 23 men.

Demographers have compiled a so-called “Love Map” that shows how the various clusters of unattached men and women are distributed across the Australian continent.

US GDP rebounds with 3.3% growth

Tax rebates have encouraged consumers to spend more

The US economy grew at a revised 3.3% annually in the second quarter of 2008, the Commerce Department said, much higher than its first estimate of 1.9%.

The rebound was linked to strong US exports, helped by the weak dollar, while government tax rebates also boosted consumer spending.

GDP grew at a rate of 0.9% in the first quarter, after a 0.2% contraction in the last three months of 2007.

The Federal Reserve has warned the economy will remain weak this year.

“While we’re not out of the woods yet, maybe we’re beginning to see some sunlight,” said John Wilson, equity strategist at Morgan Keegan.

“At some point, the market will begin to look through the trough and gauge the strength of the coming upturn.”

‘No recession’

The data showed that exports grew at an annualized rate of 13.2%, higher than the government’s initial estimate of 9.2%.

Imports fell at a rate of 7.6% as the US economic slowdown reduced demands for goods made overseas.

The improved trade balance added 3.1 percentage points to second-quarter GDP, the biggest since 1980.

The slowdown in the housing market was evident, as builders cut back and businesses reduced their spending.

Consumer spending, boosted by the government’s $600 tax rebate payments, rose by 1.7%, slightly higher than the previous quarter’s 1.5%.

Some observers said that the figures lent support to the argument that the US was not heading for a recession.

“For a recession the economy is certainly growing very quickly,” said Avery Shenfeld, senior economist at CIBC World Markets.

“A lot of that growth is driven off exports and pessimists might say that can’t continue during slowing growth overseas.

“But I would say this happened precisely during the period of slowing growth overseas … this is still an economy that faces slow times but not a recession.”

16-year low

However recent data on the US housing market suggests a grim outlook for the sector.

US house prices were down a record 15.4% in the April to June quarter compared with a year ago, according to a closely-watched report released earlier this week.

The decline was recorded by the latest S&P/Case-Shiller survey of US national home prices.

The report said the fact that the falls were nationwide was the latest sign the US housing downturn is continuing.

Separate government data said sales of new homes were at an annual rate of 515,000 units in July, up slightly from June, but still near a 16-year low, and half the rate of new home sales one year ago.

Sterling losses gather momentum

The pound has fallen further against the dollar, hitting its lowest level in almost two years amid fears the UK will fall into recession.

Sterling touched its lowest level since October 2006 at $1.8617 but later edged up to trade at $1.8691.

Measured against a basket of trade-weighted currencies, the pound is now at its weakest level since 1996.

The pound dropped sharply on Wednesday after the Bank of England issued a gloomy assessment of the UK economy.

The fall in sterling will hurt holidaymakers who have benefitted from a strong pound when traveling overseas- and make it more expensive for people to buy second homes abroad.

However, it could help exporters whose goods will be cheaper overseas.

The Bank’s governor Mervyn King said economic growth would be flat for the next year or so and that inflation would rise to 5% or above before falling.

But with domestic demand weak, a revival of exports could help the economy and limit job losses.

Rate cuts

Economists had thought inflation would prevent the Bank of England from cutting rates, but the Bank’s suggestion that inflation will begin to ease raised expectations of interest rate cuts and this hit the pound.

We have long argued that sterling has been significantly overvalued in recent years Jonathan Loynes, Capital Economics

Lower interest rates mean investors get lower returns on sterling deposits, which makes the pound less attractive.

Simon Derrick, currency strategist at Bank of New York Mellon, described the pound’s fall this week a “dramatic collapse” that recalled the aftermath of sterling’s ejection from European Exchange Rate Mechanism (ERM) in 1992.

However, he said the currency’s slide should begin to ease.

“Even within the most ferocious sterling downtrends in the past, significant corrections emerged in the middle of the moves,” he said.

But Jonathan Loynes, chief European economist at Capital Economics, thinks the pound could fall as far as $1.65 by the end of 2009.

“We have long argued that sterling has been significantly overvalued in recent years,” he said.

Deteriorating outlooks

Recent official figures have already shown the UK is struggling with high inflation and faltering growth.

Fears about European growth have also helped the dollar bounce back from record lows.

The US economy is still reeling from the credit crisis but analysts say the deteriorating outlook elsewhere in the world has given the dollar a boost.

Falling commodity prices have also supported the US currency. Investors had bought gold and oil to protect against dollar weakness and are now unwinding their positions.

The euro was trading at $1.4816 on Thursday, almost at the six-month low of $1.4815 struck this week. Earlier this year, the euro was trading at $1.60.

The euro has been further undermined by the military conflict in Georgia.

Israeli PM faces corruption quiz

Mr Olmert had faced growing calls to resign over the claims

Israeli police are questioning Prime Minister Ehud Olmert for a  fifth time over corruption allegations.

Mr Olmert denies claims that he double billed charities and state bodies for overseas trips and improperly accepted donations from a US businessman.

Last week Mr Olmert revealed plans to stand down amid growing pressure over the two latest fraud investigations.

He said he would not stand in his party’s leadership elections, paving the way for a successor to take over.

But if the new leader of the Kadima party is unable to form a coalition government after the September elections, Mr Olmert could remain as caretaker prime minister until a general election is held.

In all Mr Olmert has faced six corruption investigations relating to before he became prime minister, although no charges have been filed in any of them.

EHUD OLMERT’S POLITICAL LIFE 1993: Begins 10-year stint as mayor of Jerusalem 2005: Leaves right-wing Likud party with former Prime Minister Ariel Sharon to form Kadima 2006: Takes over as leader when Ariel Sharon suffers a stroke 2007: Helps re-launch Israeli-Palestinian peace talks after seven-year hiatus 2008: Announces plans to resign New Israeli leader, same puzzles Ehud Olmert: Corruption allegations Press ponders Olmert resignation

In the most recent case, he is accused of submitting duplicate claims for travel expenses for overseas travel and using the money to fund family trips abroad.

That followed claims by a US businessman, Morris Talansky, that he gave Mr Olmert cash-stuffed envelopes.

Mr Talansky has said the money may have been used on luxury items, but Mr Olmert has said he only received legitimate funds for his campaigns for re-election as mayor of Jerusalem and for the leadership of the Likud party.

He has said he will resign if charged.

In the succession race for the leadership of the centrist Kadima party, Foreign Minister Tzipi Livni leads Transport Minister Shaul Mofaz in the polls.

Public Security Minister Avi Dichter and Interior Minister Meir Sheetrit are also seen as potential successors.

But the leader of the right-wing Likud party, Binyamin Netanyahu, has been performing well in polls for a potential general election.

The political uncertainty in Israel has cast a shadow over a faltering US-backed peace process with the Palestinians and indirect talks with Syria.