Australia can avoid recession: Swan

Treasurer Wayne Swan has forecast modest growth and budget surpluses for the Australian economy next year and says the government can avoid budget deficit. His predictions come despite investors preparing for recession.

Reserve Bank governor Glenn Stevens has already remarked that the government should not be afraid to borrow for public projects to assist the economy.
 
“We don't believe it is necessary in the current circumstances to borrow to invest in the strength of the Australian economy,” says Swan. “We shouldn't lose sight of the fact that there are underlying strengths, that we have to meet the challenges that are out there that come from the global financial crisis.”
 
Swan’s comments indicate that it would take worse conditions for the government to borrow.