Australia the only advanced economy to record positive growth in 2009
|
13 October 2009
|
The International Monetary Fund (IMF) has commended Australia for its "enviable fiscal position" and found it to be the only advanced economy on track to record positive growth in 2009.
|
According to its most recent World Economic Outlook (WEO), the IMF expects Australia to grow by 0.7 per cent in 2009 and 2.0 percent in 2010. This compares to an expected collective contraction of 3.4 per cent for advanced economies in 2009 and growth of 1.1 per cent in 2010.
The IMF also anticipates Australia will have lower net debt than any of the major advanced economies until 2014. The 2009-10 Commonwealth Budget forecast Australian Government net debt would peak at 13.8 per cent of GDP in 2013-14, well under the 93.4 per cent of GDP foreseen for the major advanced economies in the same year.
In the report, the IMF revised its economic forecasts and now expects the global economy to contract by 1.1 per cent in 2009 and grow by 3.1 per cent in 2010. Realising the improved forecasts is dependent on full implementation of announced stimulus measures.
The IMF warns that "it is still too early for policymakers to relax their efforts to restore financial sector health and support demand with expansionary macroeconomic policies" and that "fiscal stimulus needs to be sustained until the recovery is on a firm footing".
|
