Economy set for growth in meltdown turnaround - meltdown
In his third Budget speech to parliament, Swan compared the current prospects with the situation a year ago, "at that time we faced the most severe global economic situation since the Great Depression."The unemployment rate rose in the last budget and is expected to peak at 8.5 per cent.Instead, it reached its peak at 5.8%, is now falling to 4."75 cents," he told the House .".Swan said that Australia, through the government's fiscal stimulus measures, the Australian Reserve Bank cut interest rates last year, "ignoring the seriousness of the global economy", a wellSupervise the banking system and keep in close contact with fastGrowing Asian economies like China.
But he also admitted that bail was needed.The Greek government's exit shows that the global economy is still at considerable risk.Swan's budget includes the Treasury's economic projections for the next two fiscal years.
The key forecast is GDP growth of 3.
Calculated by real value, 2010 is 25-Subsequently, in 2011, it increased by 4 percentage points --12.Family sector and business investment are expected to be the main contributors to growth.Increased income, increased staff, increased consumer confidence, and increased household spending by three times.
The Ministry of Finance predicts that it will reach 5 percentage points for the next fiscal year.This will help 1.Forecast of 9 percentage points 3.GDP grew by 25.Business investment spending is expected to grow by 7 percentage points in 201011. contribute another 1.GDP grew by 2 percentage points.The Ministry of Finance predicts that the number of jobs will increase by 2.
25 in 201011.
lower the unemployment rate from five.
By June 2011, now.
After that, employment growth is expected to reach 2 in 2011.The number of unemployed will fall to four.It will be reached by June 2012.Swan said that China's economy is in a transition phase, moving from an emergency policy environment aimed at avoiding recession to a "strong position" and that the recovery will open the way for a "new generation of prosperity.
The finance ministry showed a picture of the economy rebounding from last year's slowdown as China's hunger for raw materials flowed into the rapid expansion of the mining industry, higher incomes and stronger job growth.Demand in China, India and other Asian economies is expected to push up resource export prices such as coal and iron ore.This will see the terms of trade.Ratio between Australian export prices and import prices --rise by 14.
The next fiscal year is at its highest level in 60 years.This will prompt mining companies to invest more in expanding existing resource projects and developing new ones.The Ministry of Finance expects business investment to increase by 7 percentage points in 201011 consists of an increase of 6 percentage points in machinery and equipment expenditures and an increase of 19 percentage points in project construction expenditures, which are offset by 6 percentage points.
Non-investment fell by 5 percentage pointsResidential buildings such as office buildings.The Ministry of Finance has highlighted potential large-scale resource investments in the coming years.The company said that there are about a dozen projects under construction or under active consideration in the liquefied natural gas industry, which will improve the production capacity of liquefied natural gas.
"By 2013, it is reasonable that the investment in liquefied natural gas may increase to about 45 billion of [GDP --14.This will double the current level of investment in engineering construction in Australia.The mining boom is expected to translate into higher incomes for households, corporate profits, farms and small businesses throughout the economyOperating income is expected to grow strongly next fiscal year.
Employee compensation is expected to increase by 7.25 in 2010Wages have increased.The number of jobs rose by 2 percentage points.25 per cent.Despite good economic growth prospects, the Treasury believes that inflation within the two to three percentage points target of the Bank of Australia will stabilize.
It predicts the headline consumer price index will rise by 3.In the year ended June 2010, 25 percentage points were added and then 2 percentage points were added.5% per cent for the year ended June 2011.The Treasury Department said that the government's fiscal stimulus measures, combined with the Reserve Bank's interest rate cut in 2009, ensured that Australia experienced a much more moderate economic slowdown than other rich countries, this means that it is ready to benefit from the global recovery.
"While the global economic recovery may be uneven, the budget document said:" The outlook for Australia's economy is becoming more and more optimistic, and strong prospects in Asia are expected to support the rise of trade conditions and the rebound in commercial investment. ".Australia's economic downturn is mild, which means that Australia has largely avoided business failures.Massive job losses in many other countries provide a solid foundation for recovery.
The Ministry of Finance predicts that healthy growth in exports (which will grow in the next fiscal year 5) will be overwhelmed by stronger growth in imports (up 9) this means that Australia's trade performance will be reduced by one percentage point from GDP growth