Thursday, Australian Treasurer Wayne Swan described the International Monetary Fund's forecast for his country as bleak and said a recession is inevitable.
According to IMF's world economic outlook released Wednesday, Australia's gross domestic product will fall 1.4% in 2009, before rising 0.6% in 2010. That was more than a 1.3% contraction predicted for the world economy for this year.
It's the worst set of global forecasts the IMF has yet brought down because it now believes that the recession will be deeper and longer than previously forecast, Swan said in Canberra.
And of course this has made an Australian recession inevitable, Swan added. Swan was the third to admit that the recession is unavoidable following the Reserve Bank of Australia Governor Glenn Stevens and the Prime Minister Kevin Rudd.
Further, he said a deepening recession will have severe consequences for the Budget's forecasts for economic growth, unemployment and revenue.
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