14 November 2010

OECD Survey of the Australian Economy

The 2010 Economic Survey of Australia released by the OECD today has strongly endorsed the Government's economic management and strategy to further strengthen our economy.

According to the survey "the Australian economy has been one of the most resilient in the OECD during the global economic and financial crisis" and that Australia's future growth prospects remain bright "with potential growth among the strongest in the OECD."

One of the key factors behind the Australian success story was that while we were putting in place our response to the global crisis, we were also planning the recovery and charting the path back to surplus.

The report considers the Government's stimulus strategy among the most effective in the OECD, playing a pivotal role in supporting economic activity and confidence and helping Australia to avoid a technical recession.

In particular, the OECD commends the sound state of Australia's public finances and the Government's fiscal strategy to rapidly return the budget to surplus, noting 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."

As the report concludes, the strict spending limits in force are best suited to ensuring fiscal consolidation and getting the budget back to surplus in three years and well before any major advanced economy.

The OECD also welcomes the Government's policies to address the challenges of Mining Boom Mark II, including our tax and superannuation reforms and critical investments in infrastructure and skills.

Building economic capacity is at the core of the Government's economic plan, and we will continue to make the necessary investments to achieve sustainable growth and job creation into the future.

The OECD's views reinforce the Government's determination to build on its successes, and create a stronger, broader more competitive economy that benefits all Australians.