Australian Economy to benefit from rising oil prices

http://www.smh.com.au/news/Business/Higher-oil-prices-could-boost-economys/2004/11/30/1101577474073.html

High oil prices could actually boost the Australian economy, a leading economic commentator said.

Mark Crosby, from the Melbourne Institute, said there were signs that Australia would sail through higher oil prices and actually benefit from the surge.

He said as a net exporter of energy, Australia benefited from higher energy prices – including oil.

“The forecasts from the high oil price scenario suggest that in the short term Australia will benefit from high oil prices,” he said in a paper delivered at the institute’s quarterly forum.

“In the first half of 2005, GDP growth will be marginally higher than under the base case, and the cumulative effect is positive.”

Professor Crosby said Australian economic growth was likely to remain strong for the next two years on the back of higher oil prices….