More upbeat world growth forecasts from the International Monetary Fund (IMF) are an endorsement of global economic stimulus efforts, says Treasurer Wayne Swan.
In its World Economic Outlook Update, the IMF said the world economy was stabilising, thanks to unprecedented macroeconomic and financial policy support.
While the IMF did not change it growth forecasts for Australia, it upgraded its predictions for the world economy, predicting a 2.5 per cent expansion in 2010.
This would follow a 1.4 per cent contraction in 2009 – the biggest decline since World War II.
Mr Swan says the IMF report confirms that Australia is the strongest performing of major world economies.
The more upbeat forecasts for world growth for 2010 were an endorsement of government stimulus packages.
“As the IMF reports make clear, the global recession still has some way to run and Australia is clearly not immune from its ongoing impacts, particularly rising unemployment,” Mr Swan said in a statement.
“However, as is now evident, the government’s policies are clearly working to cushion the Australian economy from the worst effects of the global recession.”