OECD positive on Australian economy and trade
31 May 2011
The OECD’s latest Economic Outlook has provided a positive picture for the Australian economy and global growth.
The report projects Australian GDP growth to reach 4.5 per cent in 2012 after 3 per cent in 2011, with Australia’s terms of trade as a key driver. The OECD forecast for 2012 is higher than the IMF projection of 3.5 per cent made in the previous World Economic Outlook.
The report also notes how trade and investment is helping sustain the global recovery, with capital inflows and foreign direct investment in part outweighing traditional fiscal and monetary measures.
Additionally, in April 2011, a World Trade Organisation (WTO) review highlighted Australia’s transparent trade policy and reform which has underpinned economic growth in recent years.
Despite the lingering existence of downside risks to sustained global recovery, the OECD also forecasts relatively solid growth in 2012 for major economies such as the US, Japan and Europe.
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