The OECD’s latest economic survey says Australia’s 21 years of uninterrupted growth “stands out among OECD countries”.
The Organisation for Economic Co-operation and Development, an organisation representing 34 of the world’s richest and most developed countries, says Australia’s growth performance “has been sustained by sound policies” and the Asian commodities boom.
The OECD says the main challenge for Australian economic policy is “to manage a sustained recovery, while promoting important structural changes in the economy.”
OECD reports are usually written with input from the Treasury. Amongst the report’s policy recommendations, it says: “The current shift in the policy mix is appropriate. If the cycle weakens, ease monetary policy and let the automatic stabilisers work. Whilst monetary policy should be the first line of defence, if a full-scale global crisis of similar magnitude as in 2008-09 erupts, be ready to adopt prompt fiscal expansion.”
The report also urges a reduction in company tax and a broadening of the mineral resource rent tax (MMRT).
The Secretary General of the OECD, Jose Angel Gurria, described Australia as the “iron man” of the OECD. He was interviewed by ABC News24’s Scott Bevan:
Text of a media release from Treasurer Wayne Swan.
OECD survey shows Australian economy a standout
The OECD’s latest economic survey of Australia released today shows once again that our economy stands tall amongst its peers, with 21 consecutive years of growth, robust economic fundamentals and a positive outlook in the face of acute global challenges.
The OECD finds that, unlike many developed economies, the Australian economy remains resilient, with successful macroeconomic management contributing to solid growth, low unemployment, contained inflation, and strong public finances.