Australia earns praise from the IMF
The US rejects many elements of balanced governance as we have discussed before in previous editorials. It is an oddity of current US nationalism that also sees them attempting to cling to reserve currency status when a devalued dollar would serve them better by making their exports more competitive and diminishing demand for imports. Many think the same instinctive aversion over logic is at play there in relation to the health debate. It seems a particularly perverse rationale to hoist the cost of health care primarily on private enterprise with a for profit motivation and then be surprised that premiums increase as service levels diminish. However, if one looks around the world, it is the more balanced economies that performing better and recovering faster.
A recent report by the International Monetary Fund praising the fiscal performance of Australia as the only advanced economy on track to record positive growth in 2009 seems to support this. Everywhere you see an element of central planning is where you see the best performance. Why is it that the Tea Party protesters and the Glenn Beck-inspired 9/12 movement in the US fail to understand that unregulated free for alls may not be in their long-term interest? It does certainly appear to be a case of America being a faith nation in many elements, where facts and logic take a second seat to tradition and tribal belief.
The International Monetary Fund (IMF) has commended Australia for its “enviable fiscal position” and found it to be the only advanced economy on track to record positive growth in 2009.
According to its most recent World Economic Outlook (WEO), the IMF expects Australia to grow by 0.7 per cent in 2009 and 2.0 per cent in 2010. This compares to an expected collective contraction of 3.4 per cent for advanced economies in 2009 and growth of 1.1 per cent in 2010.
The IMF also anticipates Australia will have lower net debt than any of the major advanced economies until 2014. The 2009-10 Commonwealth Budget forecast Australian Government net debt would peak at 13.8 per cent of GDP in 2013-14, well under the 93.4 per cent of GDP foreseen for the major advanced economies in the same year.
In the report, the IMF revised its economic forecasts and now expects the global economy to contract by 1.1 per cent in 2009 and grow by 3.1 per cent in 2010. Realising the improved forecasts is dependent on full implementation of announced stimulus measures.
