OECD low­ers growth out­look, sees risk in our ex­po­sure to emerg­ing economies

Port Douglas & Mossman Gazette - - FRONT PAGE -

THE Or­gan­i­sa­tion for Eco­nomic Co­op­er­a­tion and De­vel­op­ment has slashed its es­ti­mates for Aus­tralian and global growth next year and warns that dif­fi­cul­ties in the emerg­ing world could send our com­mod­ity prices plung­ing. The Paris-based of­fi­cial ad­vi­sory body says that among its 34 mem­bers, Aus­tralia and Chile are the most ex­posed to a down­turn in emerg­ing economies, which it sees as the big­gest threat to the world econ­omy next year. The or­gan­i­sa­tion now ex­pects Aus­tralia will achieve 2.6 per cent growth next year, only a mar­ginal im­prove­ment from 2.5 per cent this year.

In a change from its re­cent fore­cast, it now ex­pects busi­ness in­vest­ment to show no fur­ther growth. Un­em­ploy­ment is tipped to rise to 6.3 per cent by 2015. The OECD cites other risks for Aus­tralia in­clud­ing le­v­ated labour and hous­ing costs. It says since 2000 house prices are up 79.4 per cent.

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