The International Monetary Fund’s (IMF) annual assessment of Australia’s economy and key policy settings has highlighted Australia’s strong economic performance.
As noted by the IMF, Australia’s economic performance has been robust in comparison to other advanced economies, despite the unwinding of the mining investment boom. Growth has remained solid and unemployment has remained low considering the scale of the economic adjustment.
The IMF attributes Australia’s sustained economic success to sound policy frameworks, identifying our flexible exchange rate, credible monetary policy, strong institutions, sound financial sector supervision and transparent fiscal policy as key strengths.
The report endorsed the Turnbull Government’s commitment to strengthen the Budget through a responsible program of fiscal consolidation, while supporting jobs and growth through policies that will boost infrastructure, innovation and investment.
It highlights the need to press ahead with reforms that will boost productivity, which is essential for growth in living standards. The IMF also supports the Government’s focus on fostering innovation.
The IMF supports key recommendations of the Competition Policy Review, which have the potential to boost competition, provide more consumer choice and better services. It welcomed Australia’s continued commitment to trade liberalisation, noting that Australia would stand to gain from enhanced access to services export markets.
This report is a welcome contribution that reinforces the importance of the Turnbull Government’s commitment to a reform agenda based on innovation and productivity that harnesses opportunities and boosts national prosperity.