Cause the economy is going very well, thank you very much and Labour would have messed it up
I remember all the doomsayers trying their best to say the economy is heading for the pits
Well..... let see who we believe.... them or a group like the IMF
I'm going with the latter
IMF predicts bright future From correspondents in Washington November 9, 2004
THE International Monetary Fund today commended Australia for its strong economic performance and said the country's economic outlook was favourable and unlikely to be tarnished by a softening housing market.
In an annual review of the Australian economy, the IMF lauded its six years of budget surpluses, low inflation, rising productivity and dynamic job market.
The Washington-based body credited the Government's "exemplary record of macroeconomic and financial management and implementation of structural reforms, carried out in a transparent economic policy formulation framework" for the buoyant results.
While a sharp correction in the housing market, further oil price increases or weak external demand could cloud Australia's favourable outlook, the fund said, domestic demand remained strong and could offset any short-term shocks.
The fund also noted recent Australian data "are consistent with a soft landing in the housing market and cooling of domestic demand".
The IMF reviews each its member states' economies every year, in what are known as Article IV consultations.
In its review of Australia, the fund said the Reserve Bank of Australia (RBA) had acted appropriately in response to the hot housing market and associated rise in household debt.
It said the RBA's current "wait-and-see" stance to further rate hikes was "appropriate in light of subdued inflation pressures and remaining uncertainties in the housing market".
On foreign exchange, the IMF said the dollar's strengthening over the past two years "mainly reflected a weak US dollar, strong commodity prices, Australia's more favourable cyclical position compared with other industrial countries, and a bounce back from the Australian dollar's undervalued level in 2001".
The IMF said Australia's economic expansion was likely to continue with 3.75 per cent growth in 2004.
It said economic expansion was entering its 13th year, with unemployment falling to levels not seen since the early 1980s.
After a slowdown in 2003, it noted "economic activity rebounded, underpinned by continued buoyancy of domestic demand and a gradual recovery from the drought".
The only black mark for Australia appeared to be the rise in the dollar, which led to a deterioration of the current account deficit from 4.4 per cent of gross domestic product in 2002 to six per cent in 2003.
But the outlook remained upbeat, the IMF said.
"Forward-looking indicators of economic activity point to continuing strength, albeit with some moderation, in domestic demand and there are some signs of slowing in the housing sector.
"The gradual cooling of domestic demand is expected to be, at least partially, offset by a pick up in external demand and a rebound in the agricultural sector, bringing about the long awaited rebalancing of sources of growth.
"The main risk to the outlook centres on the housing market and the associated build-up in household indebtedness, but recent indicators suggest a soft landing is likely."
