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ROUNDUP: Australian Government Upbeat on Economic Rebound
The Australian federal government Tuesday presented a picture of economic recovery, forecasting a growth of around 3.25 percent in 2001/02 financial year.
The forecast, made in the 2001/2002 federal budget delivered Tuesday, represents a significant rebound from the very sharp downturn in the second half of 2000.
"Residential construction is expected to contribute strongly to growth in 2001/02, with moderate growth in household consumption, business investment and net exports," the government said.
Delivering the budget, Federal Treasurer Peter Costello said a cash surplus of 1.5 billion Australian dollars (765 million U.S. dollars) is also expected in 2001/02 and further surpluses are expected in the following years.
The average unemployment rate is forecast at 7 percent in 2001/ 02 which is around current levels and the inflation rate is expected to increase by around 2 percent.
Over the three years to mid-2000, Australia enjoyed a record period of sustained strong economic growth, in excess of 4 percent per year, with unemployment falling to its lowest level in a decade.
On defense, Australia is to spend an extra 100 million Australian dollars (51 million U.S. dollars) a year for four years in an effort to bolster retention and recruitment to the Australian Defense Force
The funding is part of increased defense spending, 500 million Australian dollars (255 million U.S. dollars) this year, and 4.l7 billion Australian dollars (2.13 billion U.S. dollars) over four years.
On overseas aid program, the government will provide 1.725 billion Australian dollars (880 million U.S. dollars) in Official Development Assistance in 2001/02, representing an increase of 125 million Australian dollars (63.75 million U.S. dollars) over the 2000/01 budget figure, and an increase of more than 6 percent in real terms.
The budget also included a number of initiatives that target the government's social and economic priorities
These measures will provide additional support for older Australians, build a more active participation-based social safety net to substantially improve the welfare system.
In addition, the government will further develop practical measures to assist indigenous Australians, safeguard the natural resources and improve the competitiveness of Australian business.
The Australian government, in its budget, predicted that the world economic growth would drop sharply to 3.25 percent in 2001 and increase to around four percent in 2002, down from a history high of 4.8 percent in 2000.
It said the expected decline in world growth in 2001 largely reflects a significant easing of growth in the United States, a weaker outlook of Japan, and an easing of growth in Europe.
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