The expected reduction of inflation due to the current slowdown, along with the need to preserve the stability of the financial system, militates for looser monetary conditions. The recent budget measures, made possible by the significant fiscal leeway built in the previous years, will also support activity, although their effectiveness might be limited if confidence is not restored. It is important for the ongoing reform of industrial relations to preserve labour-market flexibility.
Australia: Weaker growth
GDP growth could well weaken from 2.5 % in 2008 to around 1.75 % in 2009 before picking up to 2.75 % in 2010. This would still imply that, despite the depressed international environment, the impact of the financial crisis and the fall in the terms of trade should be relatively contained. Unemployment is likely to increase, however, and inflation may dip below 3% in 2010.
Economic data
|
|||||||
OECD Observer Newsletter
Stay up-to-date with the latest news from the OECD by signing up for our e-newsletter :
Twitter feed
Digital Editions
Don't miss
-
-
The nuts & bolts of innovating:
Jamie Hyneman of Mythbusters -
The global tax rules are changing:
Pascal Saint-Amans, OECD tax chief -
-
-
Need a brainteaser?
Try the latest Observer Crossword Puzzle -
-
Interested in a career in Paris at the OECD?
The OECD is a major international organisation, with a mission to build better policies for better lives. With our hub based in one of the world's global cities and offices across continents. Find out more:- How do you measure a Better Life? The OECD has an interactive tool to evaluate well-being. Be a part of it. Create and share your Better Life Index.
Most Popular Articles
NOTE: All signed articles in the OECD Observer express the opinions of the authors
and do not necessarily represent the official views of OECD member countries.
All rights reserved. OECD 2020
Follow us