Our economic plan is working: Morrison

Colin Brinsden, AAP Economics Correspondent
(Australian Associated Press)

 

Treasurer Scott Morrison says the International Monetary Fund’s upgrade of Australia’s growth forecast shows the Turnbull government’s plan to create a stronger economy is working.

In its latest World Economic Outlook, the IMF lifted Australia’s growth forecast to three per cent for 2018 from its previous 2.9 per cent prediction made in February, while keeping 2019 at 3.1 per cent.

This is a marked improvement on the 2.4 per cent growth result in 2017.

Such growth should help the Australian jobless rate ease to 5.2 per cent in 2019, the IMF report released in Washington on Tuesday showed.

That compares with 5.6 per cent now and what the Reserve Bank believes is ‘full employment’ at five per cent.

“What it shows is the government’s plan to create a stronger economy is working,” Mr Morrison told reporters in Sydney on Wednesday.

He said a stronger economy delivers the essential services on which Australians rely, and has produced 1100 jobs a day over the past 12 months.

“It’s a stronger economy that ensures that we continue on our credible path back to a budget balance projected for 2021,” he said.

More broadly, the IMF said the global economy is enjoying its strongest performance since the start of the decade.

It said the global upswing that began in mid-2016 has become broader and stronger, led by faster growth in the Euro area, Japan, China and the US.

“The partial recovery in commodity prices should allow conditions in commodity exporters to gradually improve,” the Washington-based institution said.

The IMF stuck to its most recent world growth forecast of 3.9 per cent for both this year and next, the strongest pace since the growth spike which initially followed the 2008-2009 global financial crisis.

It said the global upswing that began in mid-2016 has become broader and stronger led by faster growth in the Euro area, Japan, China and the US.

“The partial recovery in commodity prices should allow conditions in commodity exporters to gradually improve,” the Washington-based institution said.

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