IMF Backs Australian Economic Reforms

After their initial assessment of the Australian economic reforms as momentary, the International Monetary Fund (IMF) has now given the Australian economy the thumbs up, saying it has a bright outlook and is well placed to deal with any eventuality.

Australia's economy is riding high on the back of strong demand for its resources from a booming China and India, with unemployment at a 30-year low.

In its predictions for Australia's economic indicators, the IMF tipped economic growth at 3 % in 2006, rising to 3.5 % in 2007. On inflation, which is at 4 % and outside the Reserve Bank's target range of 2-3 %, the IMF saw it and wages growth remaining broadly stable.