Consumption Growth: Growth and Australian Economy

consumption growth: Consumption growth could turn lacklustre if wage growth stayed low, it said in its concluding statement of its annual review of the Australian economy released on Tuesday, according to The Guardian. Harping on about economic growth makes politicians seem out of touch Greg Jericho Read more It believed Australia recent growth spurt above 3% was partly due to temporary factors . It said the Reserve Bank would need to keep interest rates low and the federal government boost infrastructure spending if it was to return to full employment against a weak global backdrop. The IMF said Australia economic performance had remained remarkable compared with other countries, but warns there was a downside risk to the outlook if investment remained subdued should company profits remain under pressure for longer. While unemployment has remained relatively low, underemployment and longer-term unemployment has risen, and nominal wage and inflation have been weak, it said. The IMF added prudential policies had resulted in a tentative stabilisation of the country housing vulnerabilities as tighter lending standards improved the risk profile of new loans. The IMF said the fall in the unemployment rate had likely overstated the improvement in labour markets, with the underemployment rate having risen as some 80% of jobs created in the past year had been part-time. (news.financializer.com). As reported in the news.