Australia’s Growth to Continue

Treasurer Wayne Swan said the country would experience its 22nd consecutive year of economic growth. He, however, cautioned the public that even though the economy would grow, it would be slightly weak.

The economy is expected to grow anywhere between two to 3.25 percent this year. The forecast, however, may mean that the federal government will not be able to make enough money to push the budget to a surplus by June 2012.

Shane Oliver from AMP Capital said that although the budget deficit would still fall sharply, it would be still be in a much better shape compared to other developed countries. Oliver also expressed optimism that the budget would soon reach a surplus.

The bad news is that the country’s terms of trade are expected to continue its slide. Export prices in the year to September have slipped by some 14 percent.

Mining is also expected to grow slower this year compared to its previous growth of more than 20 percent. Industry analysts said the section is expected to grow only 5.4 to 16 percent in 2013.

Household spending, meanwhile, is expected to go down to 2.9 percent. Inflation is also likely to rise more than three percent.