Production rise of 3.5 p.c. seen

Press, 1 April 1980, Page 21

Production rise of 3.5 p.c. seen

NZPA Melbourne Real gross non-farm production in Australia in 197980 seems likely to be about 3.5 per cent higher than in 1978-79, the ANZ Bank says. Average growth was 2.7 per cent a year between 1959-60 and 1978-79.

The bank says the growth in 1979-80 yvill be the L.ghest since the onset of recessionary conditions at the end of. 1973-74. Despite weak growth in consumption expenditure, strong growth in export volume is providing a fillip to the economy, and is likely to account for over half the total growth expected for non-farm production this J year. Although exports are unlikely to make the same contribution to growth in 1980-81, improvements in Australian living standards in the 1980 s seem certain to depend on the extent to which export opportunities are taken.

Industrial disputes directly Effecting export industries risk retarding this process at the time when the nation should be establishing a global reputation as a reliable, .efficient supplier. Dislocations may arise from the unsettled international trad-

ing conditions expected In 1981.

Economic activity in the United States is emerging as the major uncertainty affecting the international trading outlook. ’

Despite Australia’s energy advantages, the more difficult trading environment [emerging indicates that official policy will need to remain firmly committed towards restraining growth in the volume of money, and limiting money wage increases so as not to encourage inflation, the bank says.