Postive reports for Australia

Two of the world’s foremost economic bodies, the OECD and the International Monetary Fund have both given the Australian economy the thumbs up, praising an “impressive record” of strong growth and low inflation, a year on from the Asian crisis.

The OECD report, released Tuesday night, shows that the Australian economy has performed better than expected in 1998, and was projected to grow at 2.5% in 1999, against an OECD average of 1.75%.

In the IMF report, the government received praise for both its microeconomic reform program and its new tax package. The IMF also argued that the government needs to push through with its labour market reforms.

However, these reports also signaled that Australia still had some troubled waters to navigate through, with short-term projections showing reduced growth and a larger current account deficit.