21 February 2018
Media Release - #2018014, 2018

IMF endorses Australia’s economic performance

The International Monetary Fund has praised Australia’s strong economic performance, highlighting the Turnbull Government’s prudent management of the economy that has spurred growth.

In its annual assessment of Australia’s economy and key policy settings, the IMF determined the economic outlook for Australia was positive and remained on track to accelerate to above-trend growth.

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 confirms the Turnbull Government is delivering on its fiscal strategy and efforts to bring the budget back to balance, suggesting the Government’s budget repair strategy was “appropriately anchored” by our medium-term targets.

The IMF supports the Government’s structural reform agenda, including enacting legislative changes as recommended by the 2015 Harper Competition Policy Review, supporting implementation of the National Innovation and Science Agenda; and the Government’s extensive infrastructure investment program. It also highlights the need to press ahead with reforms that will boost productivity, which is essential for growth in living standards.

The report is an endorsement of the Government’s focus and plan to boost economic growth, create more and better paid jobs, encourage business investment and reduce the cost of living pressures faced by Australians.

The Turnbull Government is sticking to this plan, as we continue to support the economy in its transition to broader-based growth. It is a plan that is already delivering record jobs growth, and creating the conditions to support stronger wages growth, and putting more money in the pockets of hard-working Australians.

Reinforcing the need to maintain our international competitiveness, the report notes that Australia’s corporate tax rate is currently in the top tier of advanced economies.

The IMF report reinforces the importance of the Government’s commitment to a reform agenda based on innovation, creativity and productivity that harnesses opportunities and boosts national prosperity.