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OECD economic outlook



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TREASURER

EMBARGO 8.00 am AEST 11 July 1980

STATEMENT· BY THE TREASURER, THE HON JOHN HOWARD, MP

OECD ECONOMIC OUTLOOK . ·

The latest OECD Economic Outlook containing the OECD Secretariat's

latest assessment of prospects for OECD countries including

Australia, confirms Australia’s relatively good economic performance

The Economic Outlook is due to be released at 8 am AEST on .11 July.

The OECD expects real GDP in Australia to increase by 2y per cent

in 1980 despite a lower level of farm output following the record

season last year. This compares very favourably with expected

growth in the OECD area as a. whole of 1-ς- per cent and exceeds

that expected for most member countries. ' ·

The OECD expects private business investment to make an important

contribution to Australia's continued growth in 1980.

Consumer prices in Australia are forecast to rise by 10 per cent in

1980 compared with 9·5 per cent in 1979· It is encouraging that

this is below the 11y per cent forecast for the OECD area as a whole

' ' ' ' „

This prospect of maintaining our competitive position should*greatly

assist Australian industry in the months ahead.

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However, we must continue to seek an absolute reduction in the .

level of inflation to ensure the success of our economic policies.

Against a background of continuing high rates of inflation the .

OECD has expressed the view that "in the period immediately ahead

there appears no realistic alternative to giving continued

priority t o 'containing the current surge of inflation and

protecting the profitability of productive investment through

a combination of tight monetary and fiscal policies." These

views are entirely consistent with the Government's own approach.

The Outlook also reiterates the strong support for a realistic

energy pricing policy which was given at the recent OECD

Ministerial Meeting. The price mechanism is seen as having an

essential role in achieving a more rational use of existing energy

resources and development of alternatives to oil. .

10 July 1980 CANBERRA. ACT