The latest IMF World Economic Outlook issued today confirms that Australia is expected to be shielded from a near-certain global recession and along with a current +/- 20% discount in the A$ against major currencies, opens the opportunity for Transworld clients to take advantage of bargains to be had amongst quality Australian resource assets.

The IMF predicts the world's leading economies will be in or close to recession from around Christmas until the middle of next year but that Australia should comfortably dodge the recession bullet.

While growth in most leading economies slows to just 0.1 per cent in 2009, growth in Australia is expected to be 2.5 per cent for 2008 and still a resilient 2.2 per cent next year.

The close economic ties that Australia has with China and its robust resource economy is vital to China's continuing economic growth, which according to the IMF is expected to maintain its projected economic growth, largely fuelled by domestic demand which in turn is fuelling continuing high demand for Australian resources .

This strong current and projected underlying demand for Australian primary resources and its extensive capacity to meet the regions growing energy and mineral requirements is further enhanced in terms of value, by the A$ having reached a low of 0.68 cents against the US$ and what for overseas investors represents a currency led discount on asset purchases of around 20% on recent levels.

Given all these factors, Australian capital investments are extremely well priced for international investors and enjoy excellent underlying fundamentals and good medium and long term prospects.

October 2008