IMF downgrades Australia’s economic outlook
(11 October 2012 – Australia) The International Monetary Fund (IMF) joined the World Bank in downgrading Australia’s economic prospects, warning that the world economy was at risk of plunging into further recession.
With growth slowing around the world, the fund yesterday said the risk of another global crisis had grown significantly in recent months.
The IMF's forecasts for world economic growth were cut for the second time this year, to 3.3 percent for 2012 and 3.6 percent for 2013.
Domestic growth in Australia was poised to slow to 3 percent next year, it said, a 0.5-percentage-point downgrade of its previous forecast and slower than this year's expected pace of 3.3 percent.
The report also revealed Australia has overtaken Spain to emerge as the world's 12th largest economy.
Treasurer Wayne Swan said the IMF's forecast on Australia was twice the growth rate of advanced economies as a whole and consistent with the local economy growing around trend.
''The Australian economy remains the standout performer of the developed world,'' he said, adding the government remained on track to return the budget to surplus in the 2013 financial year.
The IMF's forecasts for world economic growth were cut for the second time this year, to 3.3 percent for 2012 and 3.6 percent for 2013.
Domestic growth in Australia was poised to slow to 3 percent next year, it said, a 0.5-percentage-point downgrade of its previous forecast and slower than this year's expected pace of 3.3 percent.
The report also revealed Australia has overtaken Spain to emerge as the world's 12th largest economy.
Treasurer Wayne Swan said the IMF's forecast on Australia was twice the growth rate of advanced economies as a whole and consistent with the local economy growing around trend.
''The Australian economy remains the standout performer of the developed world,'' he said, adding the government remained on track to return the budget to surplus in the 2013 financial year.
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