SYDNEY: One of the country's most high profile economists has told retailers to ignore claims "a new Great Depression" is imminent.
Access Economics director Chris Richardson said while there was no denying Australia was in the grips of a recession, current market conditions would not continue.
Speaking at the first annual GPT Group Retail Seminar in Sydney this morning (March 27), Richardson said people wanted to spend but the country's income growth "wasn't good" which is why retailers had taken such a battering in recent months.
"Current conditions are only temporary. At some stage markets in general and credit markets in particular will become less panicked and the wheels of commerce will start to turn once more. That is why forecasts of 'a new Great depression' should be treated with a grain of salt."
During a 40 minute long presentation to the group - which included representatives of Noni B, Giordano, Saba and Sportscraft owner Apparel Group, Diva and Pretty Girl Fashion Group - Richardson said Access Economics' retail forecasts were consistently weak through calendar 2009 but would make some ground through 2010.
However he warned the longer it took markets to get their "mojo" back, the worse the short-term outlook would become for Australia.
"Interest rates are now lower but confidence is too and that is enough to expect consumer spending and housing construction may be even weaker in the near term."
Other speakers at the seminar included WSGN content director Juliette Warkentin, KPMG demographer Bernard Salt and McCrindle Research director Mark McCrindle.
For more see the next issue of Ragtrader available on newsstands from Friday April 10.