Australia: Weak foreign demand

The international crisis has not spared Australia, even if its impact will be less severe there than the OECD average. Weaker foreign demand and its repercussions on the domestic economy are expected to pull down GDP by 0.4% in 2009, followed by growth of only 1.2% in 2010.

In this difficult climate, unemployment could rise to almost 8% by late 2010, while inflation should decelerate.

To mitigate the impact of the crisis, the authorities need to maintain the expansionary thrust of their economic policy. Monetary policy could be loosened further. The infrastructure development programme announced in the 2009-10 budget is welcome and should strengthen fiscal policy impact. To enhance future growth potential, the reform of infrastructure regulations should continue, in particular to ensure regulatory streamlining between States.

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©OECD Observer No 274, July 2009

Economic data

GDP growth: -9.8% Q2/Q1 2020 2020
Consumer price inflation: 1.3% Sep 2020 annual
Trade (G20): -17.7% exp, -16.7% imp, Q2/Q1 2020
Unemployment: 7.3% Sep 2020
Last update: 10 Nov 2020

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