Aust economy ‘on track’

Press, 12 October 1988, Page 40

Aust economy ‘on track’

NZPA-AAP Canberra The Australian Prime Minister, Mr Hawke, says Australia’s economy is in a generally healthy state and the Government’s economic strategy is “on track.”

A caucus spokesman said Mr Hawke told the Australian Labour Party Parliamentary caucus meeting the reported rise in imports was consistent with Budget predictions for a 12 per cent real rise in business investment. Anecdotal evidence also suggested investment intentions were more optimistic than the nominal 6 per cent rise in expected manufacturing investment for 1988-89. The 6 per cent rise was found in the June quarter survey of private new capital expenditure from the Bureau of Statistics.

Real wages would be maintained in 1988-89, and real disposable income would be able to gradually rise. “He (Mr Hawke) said the management of the economy was on track and we will not be deflected from the management strategy that the government has put in place,” the spokesman said.

“... (Mr Hawke said) we will not squander the progress that this Government has built up over the past years.”

Mr Hawke had said the Budget’s forecast for lower inflation, a sAusts.47 billion (S7B) Budget surplus and a zero net public sector borrowing requirement in 198889 created a climate compatible with easier interest rates.