Glenn Stevens the Governor Reserve Bank of Australia (RBI) made some announcements today, where he was pessimistic and said that the sovereign European debt crisis needs to be sorted out somehow, otherwise it will drag the whole world into unsettled slowdown.

Additionally, he added that the Australian economy is one way or another surviving amid the global economy slowdown.

It worth mentioning that the RBA on November cut down the borrowing rate by 25 basis to reach 4.50% instead of 4.75%, and that was as a result for highly appreciation and the huge increase in the Australian dollar along with the increase in the inflation rate along with Queensland floods that occurred earlier this year.

Finally the Governormentioned China, as the Chinese economy current fluctuations are negatively affecting the Australian economy, as the world's second economy is considered the prime trade partner and the main importer for the Australian economy.