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