Growth in China continues to support Australian economy
IMF growth predictions for China still robust
By
Wouter Klijn Mon 21 Jul 2008
Predictions for economic expansion in China indicate growth will be strong enough to support the Australian economy.
The International Monetary Fund's (IMF) prediction for economic growth in China is still robust and remains supportive of growth in Australia, Federal Treasurer Wayne Swan said on Friday.
China's GDP will grow by 9.7 per cent this year compared to an 11.9 per cent increase in 2007, the update indicated.
The figure for 2008 is an upwards revision from one published in the April outlook, when the organisation expected a growth of 9.3 per cent.
The organisation also expressed serious concerns about global inflation and said that policymakers worldwide should address the problem as a top priority.
"The global economy is in a tough spot, caught between sharply slowing demand in many advanced economies and rising inflation everywhere," the organisation said.
Treasurer Swan is confident appropriate steps are being taken to fight inflation in Australia and said the IMF recently expressed its approval for the way the Government is approaching the issue.
Addressing global inflation last week, Reserve Bank of Australia governor Glenn Stevens called for emerging economies to do their part in fighting inflationary pressures by tightening their monetary budgets, rather than following US policy.
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