Stimulus provides a strong platform for growth

Success of the stimulus

Strong and rapid policy stimulus sustained economic activity and jobs during the global downturn.

Fiscal and monetary stimulus shielded the Australian economy from the worst of the global recession. It sustained confidence and spending, driving a recovery in private demand.

With private sector activity gathering momentum, fiscal stimulus is being withdrawn as planned.

Fiscal stimulus continued to build capacity in our economy during the global recession. Australia can now build on this strong platform as the world moves into recovery.

World‑leading economy

The Australian economy is set to remain a world leader, growing by a strong 3¼ per cent in 2010‑11 and 4 per cent in 2011‑12.

Our unemployment rate, already the second lowest compared to the major advanced economies, is set to fall further, to 4¾ per cent in 2011‑12.

A healthy recovery in business investment is in prospect and exports are recovering, underpinned by high levels of business confidence and the global recovery.

Incomes are set to pick up in line with a strong labour market and recovery in business profits.

Reaping the benefits of a dynamic region

Australia is also benefiting from its location in the fastest growing region in the world.

Our close trade links with the growing economies of Asia and demand for our exports are forecast to push Australia's terms of trade to their highest level in 60 years. This will boost incomes and support a private sector recovery.

Australia's favourable position, both economically and geographically, means Australia can take full advantage of the global economic recovery.