IMF reveals preliminary findings on state of Australian economy

The International Monetary Fund (IMF) has completed its official staff visit to Australia and will publish its report into the country’s economy in the coming days.
Its concluding statement highlights that with stronger global growth and a boost from infrastructure investment, conditions for a pickup in growth seem in place, although such growth is likely to be modest due to low wage growth impacting spending power of consumers.
The IMF also picked up on the need to strengthen housing supply in metropolitan areas in order to make the market more affordable.
RELATED STORIES:
- IDC: Salesforce will add $38bn to Australian economy by 2022
- Australia’s second hand economy is worth $43.5bn – Gumtree
- Read the November edition of Business Review Australia magazine
Generally, it says, Australia’s recovery post-mining boom is continuing despite difficulties.
“Domestic demand growth has strengthened, and employment growth has picked up markedly since the beginning of the year, most of it in full-time jobs. But labour market slack remains present, and wage growth has remained weak,” the concluding statement said.
Among the measures recommended include an easing out of stamp duty, while the IMF also called for the government to cut income tax rates.
Regarding business rates, the economic organisation believes that lowering corporation tax would act as an economic stimulant. To make up the receipts deficit, Australian authorities should consider raising levies on land and consumption.
Australia’s R&D share of GDP lags behind other OECD members, another area highlighted by the visiting delegation.
- What are the key findings of ANZ’s Financial Wellbeing report?Corporate Finance
- Microsoft – digital transformation will add $45bn to Australian economy by 2021Technology
- Which Australian territories are performing best economically?Corporate Finance
- Andrew Conway: The Accounting Industry's Rising StarCorporate Finance
Featured Articles
Nirvik Singh, Global COO and President International of Grey Group, cultivating culture and utilising AI to enhance rather than replace human creativity
On a mission to accelerate the adoption of sustainable energy solutions, US$30 billion Chinese tech firm Longi is not just selling solar – but using it
Armed with an ambitious billion-dollar strategy, Samsung is on track to achieve net zero carbon emissions company-wide by 2050 – but challenges persist