Australian economy on top of the world

According to two respected international reports, Australia’s economy continues to lead the developed world.

The International Monetary Fund supported mounting evidence that Australia was powering ahead of its rivals during the worst downturn since the Great Depression. It recently upgraded its outlook for the Australian economy, tipping it to retreat by only 0.5 per cent this year before growing by 1.5 per cent next year. It earlier forecast a contraction of 1.4 per cent.

In support of these findings, Australian Prime Minister Kevin Rudd told Parliament: "We currently, among the major advanced economies, have the fastest growth. We have also the second-lowest unemployment. We have the lowest debt. We also have the lowest deficit."

The positive IMF forecast followed an Organisation for Economic Co-operation and Development (OECD) report that indicated that Australia's economy will be the best performer of any advanced nation this year. The OECD forecasts Australia will shrink by around half a per cent, before returning to positive growth in 2010. That compares to a contraction across the OECD's 30 industrialised members this year of four per cent.

The OECD forecasts the domestic economy will contract by 0.4 per cent this year, the mildest contraction of any of the 30 OECD countries, before growing by 1.2 per cent next year.

Importantly, the OECD believes unemployment will be not be as severe as the forecast in the Budget.

Treasury has predicted unemployment will peak at 8.5 per cent mid-2010, but the OECD believes the high-water mark will be 7.9 per cent.

However you look at it, Australia is still a highly desirable destination for skilled
workers and professionals looking for a land with high career potential and relatively blissful living conditions.