The International Monetary Fund has upgraded its forecast for growth in Australia, citing an aggressive response by the Federal Government and Reserve Bank to the financial crisis.
The IMF has predicted that Australian GDP will contract by 0.5 percent in 2009, before growing by 1.5 percent next year.
The IMF applauded the Australian government and central bank for their work in lessening the impact of the global financial crisis.
However, the IMF also said household debt in Australia is higher compared to other advanced countries and sees room for further stimulus, if needed.
Treasurer Wayne Swan was quick to comment on the IMF’s positive assessment.
‘The International Monetary Fund has today again commended Australia’s response to the global recession… the IMF Article IV report shows that Australia has the best performing economy of any developed country.”
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