Economic performance
Despite earlier weakness in the world economy and a severe drought, the Australian economy has continued to grow strongly. A stronger world economy in 2004-05 will provide a renewed source of external demand as domestic demand growth slows. |
Overall, economic growth is forecast to be 3½ per cent in 2004-05. Inflation is forecast to be a low 2 per cent in 2004-05. This is a marked improvement from the 1970s and 1980s, when inflation averaged more than 9 per cent a year. |
Low inflation has been an anchor for sustainable economic growth