Australia’s 2012 - another successful year? Chris Richardson

2012 has so far seen a buoyant share market, rising commodity prices, positive news on the US economy and a better than expected economic position in Europe.That mix of good cheer has begun to unwind the deep drop in confidence evident in recent months among Australia’s business community and the general public. Much of the recent optimism is thanks to the cheap money that Europe’s Central Bank has made available in the last two months. Whilst it hasn’t provided a lasting solution, it does at least mean the sticky-tape holding Europe together is now stronger.2012 may well turn out better than anticipated for Australia. But there is still a definite possibility that things could start to go in the other direction, with, among other things, the economic situation in Europe and in particular Greece, still very delicate.What lies ahead on the Australian and global horizon and what are the risks that might bring to an end Australia’s charmed run without a recession?