by Alan Thornhill
Wayne Swan has described the latest IMF forecasts as a “critical reminder” of the need for quick action on Europe’s debt problems.
In a statement just released, the Treasurer endorsed the IMF’s declaration that “delayed or insufficient policy action by European leaders still represents the biggest risk to the global outlook.”
Mr Swan noted, too, that the IMF had identified further signs of weakness in the global economy.
“Reflecting this,” Mr Swan said, “ the IMF’s global growth projections have been lowered slightly over the forecast period.
The IMF now expects the global economy to grow by 3.5 per cent in 2012.
That is broadly unchanged from its April forecast.
However, the IMF did downgrade its global growth forecast for 2013, from 4.1 per cent to 3.9 per cent.
Mr Swan said the IMF report shows that European leaders must act quickly to implement the reforms, that they agreed upon recently.
They must make real progress on their plans for a fiscal and banking union.
Mr Swan said broader structural reforms are also needed to boost growth and competitiveness and restore fiscal sustainability.
“The IMF also highlights the threat of an excessive fiscal tightening in the United States at the end of 2012,” the Treasurer said.
He said this reflects the need for US policymakers to achieve credible medium term fiscal consolidation while still supporting growth.
Mr Swan noted, too, that the IMF had again recognised that the Australian economy is a stand out performer, in the current global economic scene.
“The Australian economy is in a league of its own,” Mr Swan said.
He noted, too, that the IMF is predicting 8 per cent growth for China this year, and 8.5 per cent growth next year.
“Global growth is expected to continue to be led by our region,” Mr Swan, who is now back at his desk, after seventh visit to China, said.
“While growth forecasts have been revised down slightly since the (IMF’s April forecast), developing Asia is expected to grow by 7.1 per cent in 2012 and 7.5 per cent in 2013, “ he said.
Alan Thornhill is a parliamentary press gallery journalist.
Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
Wednesday December 11
Holden has announced it will stop producing vehicles in Australia in 2017. Toyota likely to follow suit
The Dow Jones index fell 53 points to 15,973
Acting PM Warren Truss writes to Mike Devereux seeking “a clear statement” on Holden’s future
The Federal Treasurer, Joe Hockey, says the Mid-Year Economic and Fiscal Outlook will be released next Tuesday, at the National Press Club.
|Aud To Usd||0.9053||N/A||N/A|
|Bhp Blt Fpo||36.180||-0.640||-1.74%|
|Bramb Ltd Fpo||8.800||-0.060||-0.68%|
|Qbe Insur. Fpo||11.010||+0.190||+1.76%|
|Macq Group Fpo||52.420||+0.240||+0.46%|
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