Economy will be stronger than expected - forecaster
Economic forecaster Access Economics believes the 2008-09 financial year will be much stronger than forecast by the Federal Treasury and the Reserve Bank of Australia.
It says migration into Australia will rise to a record 200,000 this financial year, pulling the economy up with it.
Access Economics’ Business Outlook report predicts strong domestic demand, good employment growth and solid growth in output. It agrees with another economic forecaster, BIS Shrapnel, which has also argued that the general pessimism about the economy is overdone.
Access says that, apart from rising migration intakes, there is strong business investment, particularly from the mining sector, and indications that GDP growth will be considerably higher than the Treasury forecast for 2008-09.
