Economy to slow in 2009 10:17pm 23.06.08

Australia’s gross domestic product (GDP) will slow to 2.4 percent by March 2009, predicts a report on economic trends issued by the Melbourne Institute (MI). This is down from three percent in the financial year to June 2008.

The MI also forecasted employment growth will slow to 2.2 percent by the same period, down from 2.8 percent the previous year, but the unemployment rate would remain steady at 4.3 percent. Queensland was the only state where the MI saw strong employment and a lower unemployment rate (3.8 percent) than the rest of the country.
 
On continuing inflation, the report said: “Rising inflationary expectations are consistent with the recent hike in global oil prices, and stronger than expected March GDP figures. At the same time, weaker credit, retail trade, and employment figures are indicative of the softer economic conditions needed to curb inflation.”