Treasurer Wayne Swan has signaled the Government will start to phase out stimulus measures as the economy improves.
The latest ABS gross domestic product data released today revealed the economy grew a stronger than expected 0.6 percent in the second quarter, proving that Australia has been the best performing advanced economy over the past year.
Swan said the Federal Government’s economic stimulus measures have so far helped to boost the Australian economy by supporting jobs and building confidence, but there will come a time when the stimulus is not needed.
“The Government’s economic stimulus is still needed to support activity and jobs,” he said.
However, he said the prospect of a gradual pick-up in private sector activity will “allow the staged withdrawal of the stimulus to proceed from the December quarter this year, as foreshadowed in the 2009-10 Budget.”