Australia’s GDP has been forecast to grow at 2.5 per cent next year and 3.5 per cent in 2011 in the most recent economic outlook by the Organisation for Economic Development (OECD).
In its summary report for Australia, the OECD also predicted unemployment would peak at around 6.25 per cent in 2010. This is half a per cent less than Treasury’s forecast of 6.75 per cent.
The latest figures are an upgrade on the OECD’s June figures which had Australia’s unemployment rate hitting 7.9 per cent by the end of 2010.
However, the most recent forecast noted the existing economic trends and reduction in “risks argue in favour of a gradual tightening of monetary policy”.
“Furthermore, the planned reduction of the federal budgetary stimulus seems to be an appropriate response to the needs of the economy,” the report reads.
The outlook for all OECD countries combined was less rosy with the OECD stating the recovery was still “too timid” to stop unemployment going up.
In terms of GDP for all OECD countries, the forecast was for a drop of 3.5 per cent this year but a gain of 1.9 per cent in 2010 and 2.5 per cent in 2011.
It also noted China is leading the recovery after having limited exposure to the financial mess and thanks in part to its economic stimulus.
See the full report: http://www.oecd.org/document/18/0,3343,en_2649_34109_20347538_1_1_1_1,00.html
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