IMF remains positive on Australia’s economic outlook
23 September 2011
The International Monetary Fund has confirmed Australia’s economic outlook remains positive, despite slowing global growth.
The IMF’s September World Economic Outlook notes Australia’s stable and strong financial position, saying the planned return to Budget surplus by 2012/2013 puts it in a good position to weather a period of growing global uncertainty.
The IMF predicts Australia’s GDP will grow by 3.3 per cent in 2012, while unemployment will fall to 4.8 per cent.
The growth forecast is down slightly on earlier estimates but the IMF points out recent natural disasters such as the Queensland floods have had only a temporary economic effect. Meanwhile, the mining boom provides an opportunity to build a fiscal buffer over the medium term.
Australia’s situation stands in contrast with many other parts of the developed world, where confidence has fallen and downside risks are growing, according to the IMF.
The report’s release coincided with Australian Treasurer Wayne Swan being named Finance Minister of the Year by Euromoney magazine.
The magazine said Mr Swan deserved the award for his stewardship of Australia’s economy during the global financial crisis.
Australia had avoided recession and was now the world’s best-performing developed market economy.
Euromoney said Australia’s position within the global financial community had never been stronger, thanks to sound economic fundamentals, strong exports, low unemployment and rising incomes.
Increased foreign direct investment and the appreciating dollar showed world markets shared this positive view, the magazine said.
Mr Swan will be presented with his award during World Bank and IMF meetings in Washington early next week.
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