IMF predicts Australian economy will recover

Australia is projected to outpace all major advanced economies this year, as predicted by the International Monetary Fund (IMF). World economy Outlook pointed out that Australia’s economy will shrink 2.4% in 2020, then grow 4.5% in 2021 and 2.8% in 2022.

The global economy is projected to grow 6% in 2021 and 4.4% in 2022, compared to previous forecasts of 5.5% and 4.2% in January.

Treasury Secretary Josh Frydenberg said Wednesday, “This report confirms that it surpassed all major advanced economies last year.” “They still have a long way to go, but Australians can see the light at the end of the tunnel.”

Epoch Times Photo
Treasury Secretary Josh Frydenberg during a press conference in the Main Committee Room of the Capitol in Canberra, Australia, on July 23, 2020. (SamMooy / Getty Images)

Treasurer also revealed in Press release The next phase of Morrison’s economic recovery plan is “tax cuts, unprecedented business investment incentives, record-level investment in skills and training, infrastructure, and targeted support for the aviation and tourism sector. We will support the activities of the private sector through a number of measures, including. ” .. “

“In the last 12 months, we have outperformed all the major industrialized nations in terms of economy, but there is no other country you would like to live in other than Australia,” he said.

However, the IMF warns that there is a high degree of uncertainty and possible risks, especially in relation to the COVID-19 pandemic.

“This outlook presents difficult challenges related to differences in domestic and domestic recovery rates and the potential for sustained economic damage from the crisis,” the IMF said Tuesday.

“Still, it relies heavily on the competition between viruses and vaccines.” “While advances in vaccination may lead to better predictions, new viral variants that avoid vaccines can lead to rapid downgrades. there is.”

The unemployment rate dropped unexpectedly to 5.8% in February, but the outlook for employment remains uncertain after JobKeeper’s subsidies stopped on March 28.

The fund also predicts that Australia’s unemployment rate will drop to 6% in 2021 and 5.5% in 2022.

Inflation is expected to be 1.7% and 1.6% this year and next year, respectively.