Australia Premier Warns on Debt

Australian Prime Minister Julia Gillard expressed concern Thursday about the outlook for global growth, warning that Europe's sovereign-debt crisis is far from being resolved and the U.S. is only beginning to deal with its fiscal problems, The Wall Street Journal reported. In a wide-ranging interview Thursday, Ms. Gillard said the inability of Europe's leaders up to now to calm markets worried over the economic health of the euro zone was the world economy's biggest challenge. Confidence has also been dented by a "spectacular" political deadlock in the U.S. that culminated in Standard & Poor's decision to strip the country of its prized AAA credit rating. "What's happening in Europe I think is more concerning than what's happening in the U.S.," Ms. Gillard said. "We continue to monitor all of the developments with concern; we do think there will be some impact on global growth." Unlike many developed countries, Australia has been relatively insulated from shocks in the global economy due to its role as a cornerstone supplier of resources such as coal and iron ore to rapidly industrializing countries in Asia, especially China and India. Read more. (Subscription required.)