The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of Wayne Swan

Wayne Swan

Deputy Prime Minister and Treasurer

3 December 2007 - 27 June 2013

18 November 2010

NO.084

OECD Economic Outlook — November 2010

Today's OECD Economic Outlook confirms Australia's economy continues to be one of the best performing in the developed world with enviable growth and unemployment forecasts.

The growth outlook for Australia is one of the report's strongest at 3.3 per cent in 2010 and 3.6 per cent in 2011, well above that of the OECD area as a whole with rates of 2.8 and 2.3 per cent respectively.

The OECD also projects outstanding unemployment outcomes for Australia with the headline rate forecast to fall to 4.9 per cent in 2011 — in stark contrast to the 8.1 per cent expected for the OECD.

The report finds that the global economy's recovery has become more fragile, with many developed economies still grappling with sluggish growth and stubbornly high numbers of people out of work following the global recession.

These forecasts show that against the backdrop of this patchy global recovery, Australia is well ahead of the pack, with an economy better placed than almost any other to weather challenges presented around the world.

The OECD also praises the Government's sound fiscal management, finding that "the budgetary situation is well under control", with very low public debt — settings that have the government on track to bring the budget back to surplus in 2013.

According to the OECD, Australia will achieve a surplus in 2013, ahead of most of the world's developed economies. This budget turnaround is only possible due to our strict fiscal rules, enabling a consolidation of 4½ per cent of GDP over the next three years alone.

The OECD has previously given a strong endorsement of the Government's fiscal strategy, stating in its Economic Review of Australia just this week that "the prudent fiscal consolidation strategy reinforces Australia's commitment to sound public finances, the maintenance of which is one of the major lessons from the international economic crisis."

Despite challenging global conditions, the OECD report gives reason for Australians to remain confident about the strength and future health of the Australian economy.

The Gillard Government is determined to convert our economic strength into enduring gains for the Australian people through a comprehensive reform agenda to strengthen and broaden our economy to maximise the opportunities that flow from Mining Boom Mark II.

CANBERRA
18 November 2010