According to Access Economics report, the Australian economy will slide into recession in 2009 after an unprecedented 17 years of growth.

The report predicted that Australia's central bank will soon slash the benchmark cash interest rate from 4.25% to 2.5% and that the Australian dollar will slump this year from US 68 cents to US 56 cents. It said that "For Australia, 2009 will be a year much like 1990. The economy will be slip sliding into recession, and it won't be clear just how bad this will get."

The report said that there will be a quick unwinding of Australia's recent prosperity, which was built on selling energy and minerals such as coal and iron ore to feed China's once booming industrial expansion. It added that "China's slowdown is Australia's recession."

Mr Wayne Swan Treasurer, whose government has predicted sluggish growth this year, would not comment on the recession prediction. He said that "There's no doubt that a slowing of the global economy will impact upon commodity prices."

(Sourced from www.associatedpress.com)