In good hands

Federal Treasurer Peter Costello has welcomed the findings of an International Monetary Fund (IMF) report which has commended Australia's economic management.

The report also found Australia's economic prospects remain bright with GDP expected to grow to about 3.5 per cent in 2007. Mr Costello says it is a very strong endorsement of economic management in Australia.

It’s not all paradise though, according to Bloomberg,

Australia's central bank may need to raise interest rates again if growth in the Asia-Pacific region's fifth-largest economy accelerates, the International Monetary Fund said.

"Further monetary tightening may eventually be needed if domestic demand growth or other factors lead to an increase in underlying inflation pressure," the IMF said in an annual report on Australia posted on the Fund's Web site.

The resource-price boom will ``eventually'' end, the IMF said. Australia's export commodity prices will ``decline significantly'' as investment by mining companies increases supply.

This is where the Howard government and Peter Costello come into the picture, because of their leadership and policies.

Australia will be able to withstand the price decline and any international economic slowdown because its government budget is in surplus, its has a flexible exchange rate and the central bank looked to the medium term in setting interest rates, the IMF said.

This ``provides substantial cushions to help the economy cope with a fall in commodity prices or other shocks,'' the IMF said.

So it’s not just the Howard Junta banging on about the good times, so we the electorate can be thankful for their leadership and when the good times come to an end, it’s best to let them look after it as they have so far.

Now, can anyone remember which lunatic labor wanted to foist upon us, because it was time for a change.

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