Australia could avoid a recession according to the chief economist for the HSBC global financial group in Australia and New Zealand.

John Edwards revealed his view of the future as guest speaker at an economic outlook business breakfast on March 26. "I think we've got a chance of getting through the year with zero growth. It's just possible we can get through without a recession, technically speaking," he said.

"Our financial system has come through this crisis in great shape," said Edwards, who was seconded to the Treasury last year for three months.

He said Australia is well positioned to scrape through this downturn because of a number of factors including a well balanced economy, a floating currency, a strong monetary and fiscal policy response, and a high percentage of Australians opting for variable mortgage rates.

Household consumption and housing construction are the keys to the upswing, Edwards said. Australian households are better off this year than they were six months ago because of lower petrol prices, low interest rates and government cash handouts.

However, while Edwards predicts investment will start to accelerate in the second half of 2009 he pointed out that the impact on unemployment is much slower, typically peaking some quarters after a recession ends.

Survey results of 315 employees released by Sydney-based accounting and finance recruitment practice Aequalis Consulting (which hosted the breakfast presentation) show 72.8 per cent of respondents will stay in their current jobs due to the uncertainty in the economy, even if they don’t like it. A further 86.4 per cent would be prepared to work harder without immediate financial reward if their workload was suddenly increased due to staff shortages.