Fed:Global economy still facing "considerable challenges":Swan
Thu Oct 1 23:46:04 EST 2009
Thu Oct 1 13:46:04 UTC 2009
CANBERRA, Oct 1 AAP - The International Monetary Fund's latest economics forecasts highlights the "considerable challenges" facing the global economy, Treasurer Wayne Swan says.
In its latest World Economic Outlook, released in Istanbul on Thursday, the IMF lifted its 2009 forecast for Australian gross domestic product (GDP) to growth of 0.7 per cent, from its previous estimate for a contraction of 0.5 per cent.
Australia is the only advanced economy expected to grow this year.
In 2010, the IMF sees local economy expanding by 2.0 per cent, compared to its previous estimate for growth of 1.3 per cent.
"(This confirms) our economy has outperformed all advanced economies during the global recession, with stronger growth and lower debt and deficits than the major advanced economies," Mr Swan said in a statement.
The global institution also raised its projections for world growth, but warned risks to the outlook remained on the downside.
"Premature exit from accommodative monetary and fiscal policies is a particular concern because the policy-induced rebound might be mistaken for the beginning of a strong recovery," it said.
Mr Swan said the IMF has highlighted the considerable challenges ahead for the global economy.
"As the global policy support is gradually phased down over time and the inventory rebuilding progressively loses its momentum, private demand will need to gain momentum to sustain the recovery," Mr Swan said.
