Growth: Downside Risk and Growth Rate

growth: The economy is outperforming most other advanced economies with a growth rate of 3.3 per cent, having now completed a quarter of a century of unbroken expansion, according to Nine News Australia. It comes at a time when an uncertain global economy is posting only subdued growth and with downside risk stacked against it. The prime minister is right. But the International Monetary Fund latest global forecasts suggest it doubts the Australian economy can keep its head above the three per cent rate for too long against that backdrop, meaning the jobless rate will be stuck around 5.7 per cent in 2017. Hardly the sign of a robust economy. National Australia Bank chief economist Alan Oster still expects a further two 0.25 per cent interest rate cuts by the Reserve Bank next year, taking the cash rate to just one per cent and even deeper into record low territory. (news.financializer.com). As reported in the news.

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