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Australian
economy tipped to top the global league for next year |
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SYDNEY - The Australian economy is tipped to continue to outperform the rest of the world in the financial year beginning July 1 after it defied global gloom to become the world's strongest economy in the year just ending. But analysts said Sunday that consumer spending may be the key to how strong economic growth is this coming financial year, as the housing sector loses some of the steam that made it the main economic driving force for the past year. "Consumption will remain solid over 2002 and well into 2003, underpinned by solid employment gains and wealth effects from higher housing prices," National Australia Bank economists said in a statement. They also noted that business investment should be a good support of economic growth over 2002/03. "After two years of weakness, business investment improved in late 2001 - albeit mainly mining related," they said. "While current activity is still low, surveys point to a strong recovery from mid2002." The Westpac-Melbourne Institute leading index of economic activity said last week that growth in the 6-9 months from April this year was likely to come in at 4.8 percent, which is still robust although down from the 6.57.0 percent recorded earlier in the year. Westpac general manager of economics Bill Evans said the figures diminished fears about the economy overheating and pointed to more moderate growth for the rest of the year. -AFP |
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