Aussie Close to Yesterday’s High, IMF Outlook - 18.4.2012
The International Monetary Fund released yesterday its April world economic outlook, saying that projections improved slightly but remained fragile. The global economy will expand by 3.5% in 2012 and 4.1% in 2013, according to the updated forecast of the fund. In January growth forecasts were at 3.3% and 3.9% respectively. The IMF appeared to be cautious however, indicating that risks remain elevated, particularly from Europe and oil.
The Australian dollar strengthened yesterday against the US counterpart toward 1.0400 and has been trading in a narrow range close to yesterday’s high in Asian trading hours. The IMF predicted real economic growth in Australia will accelerate from 2% in 2011 to 3.0% in 2012 (down from 3.3% in September report) and 3.5% in 2013. Australian Treasurer Wayne Swan however said the IMF report confirms that Australian “economic fundamentals are strong” and is “consistent with the government’s outlook”.