IMF upgrades Aust growth forecast

28th January 2010

Australia’s economic growth forecasts have been revised upwards by the International Monetary Fund amid predictions the international economy will accelerate this year. The IMF confirms that Australia's economic growth of just under 1% in 2009 has outstripped every other developed nation in fighting off the global financial crisis, with other advanced economies contracting 3.2%. It has upgraded its 2010 growth forecasts for Australia by 0.5% to 2.5%, compared with its last assessment in October, and says growth will accelerate to 3% next year. This is considerably stronger than the recovery forecast for other advanced economies, which are expected to grow 2.1% in 2010 and 2.4% in 2011. The IMF's mission chief for Australia, Ray Brooks, says the recovery has been led by an increase in domestic demand and continued strong income from commodity exports such as iron ore and coal.