US financial turmoil to slow Australian growth

The shockwaves from the financial turmoil in the United States will slow growth in Australia despite the fundamental strength of the economy, Treasurer Wayne Swan said Wednesday.
"It will slow growth here and that will have a flow-on effect on the budget surplus," Swan told the Australian Broadcasting Corporation.
"But at the moment we are experiencing very high terms of trade, record commodity prices, which are assisting us during this difficult period."
Swan later told parliament that while there was likely to be further volatility in global financial markets the Australian banking system remained well placed to meet the challenges.
"What I can say is, and I think it's very important and we should continue to shout it from the rafters, is that our banking system in particular is well regulated and it is well capitalised."
Prime Minister Kevin Rudd also stressed that Australia was well positioned to weather the financial storm symbolised by the collapse of Wall Street titan Lehman Brothers and the troubles of insurance giant AIG.