Swan: Economy Still Growing

Wayne Swan said the growth of the Australian economy remains impressive as the latest International Monetary Fund (IMF) report showed how the country is faring against the others.

The latest World Economic Outlook Update saw a downgrade of the agency’s growth outlook for China and India. The IMF also warned that a downward trend may continue for the world economy. China and India are two of Australia’s biggest trading partners.

Although the report did not provide a specific forecast for Australia, other economies were given a lower rating from 2.6 percent to 2.4 percent for 2012. For 2013, “other advanced economies” were given a rating from 3.5 percent to 3.4 percent.

Swan said the IMF’s report showed how strong the Australian economy is. It also serves as an indicator to other countries that Australia is a great country to invest on.

The Treasurer said that despite the economic challenges other countries are facing, Australia remains stable and is a league of its own. The high Australian dollar and structural changes being made are also proof that the economy is doing well.

Swan also said that other indicators of a healthy Australian economy include low jobless rate, managed inflation rates, low interest rates, among others.

The government’s economic growth forecast is pegged at 3.25 percent for 2012/2013 and three percent for 2013/2014. This shows that the government’s forecast and confidence level to the economy is much higher than the forecast given by the IMF to other advanced economies.