Faster Growth Forecast For Australia

Press, Volume CVI, Issue 31257, 2 January 1967, Page 7

Faster Growth Forecast For Australia

fN.Z. Press Association—Copyright) LONDON, January 1. Australia seemed set for a period of faster economic growth in 1967, the “Economist” said in a round-up on world economic prospects.

“The economy has not been behaving badly, but it has not been growing fast enough for even cautious opinion, much less growth addicts,” the magazine said.

crease less fast after the burst of 1964 and 1965,” the “Economist” said.

"But so many projects are in so many pipelines that a renewal of a high rate of massive new investment cannot be long delayed.

“The external account presents no serious problems, for imports are running lower, in spite of some big defence items, and exports are buoyant

“All factors are now working to Australia’s advantage.”

It pointed out that the effects of last season’s drought were wearing off; that there was a record wheat harvest in progress: and that wool sales were well up so far. Retail trade was likely to be boosted in the next six months when demand postponed by the drought awakened.

“The bank system is in a comfortably liquid state. “It could well be that Australia in the coming year could get from a 3 per cent rise in civil employment an increase in the gross national product of 5 per cent something like twice last year’s rate.”

“All the ingredients point to growth. Policy is beginning to point that way, too.

“Interest rates at the shorter end of the market are gently being levered down by the Reserve Bank. The 1966-67 Budget looks more stimulating now than when it was tabled. With defence spending increasing sharply, there will be a further strong rise in public spending in 1966-67, and this comprises a fifth of the whole.

“The labour force is expected to increase by 140,000, aobut the same as last year. But there could be a sharp rise in productivity a head, after big investment in plant and equipment in the last three years, much of it underused last year. “It does seem that private capital expenditure will in-