Australia's economic growth will continue to benefit from the expansion in the emerging markets despite Japan's quake and unrest in North Africa, Treasurer Wayne Swan says.
He said the global economy would prosper overall for the next two years, according to the latest report from the International
Monetary Fund.
"The IMF ... says emerging economies will continue to underpin global growth, forecast at 4.4 per cent this year and 4.5 per cent in 2012, but warns of key downside risks to the outlook," Swan said yesterday.
"Our devastating summer of natural disasters means Australia's economic growth will be impacted in the short term, as will the Budget from reconstruction spending and lower tax receipts," he said.
Treasury's analysis indicates the combined impact of natural disasters at home and abroad could cut Australia's economic growth by up to 0.75 of a percentage point to an annual rate of 2.5 per cent in 2010-11, but Swan said that fall would not last.
- AAP
