Australian gov't's stimulus measures vindicated: treasurer

Australian Treasurer Wayne Swan on Monday said the latest Mid-Year Economic and Fiscal Outlook (MYEFO) had vindicated the government's economic stimulus measures.

"What Australia has achieved is something special. We have avoided the destruction of our capital and our skills base that is usually accompanied by a sharp recession," he told reporters in Canberra.

"That's something that all Australians can be proud of because it's something that we have done together."

The economy is expected to grow 1.5 percent in 2009/10, exceeding the May budget's forecast that it would contract by 0.5 percent.

Unemployment is expected to peak at 6.75 percent in 2009/10, while the budget is forecast to return to surplus in 2015/16.

Swan said the "impact of stimulus has been far greater than the sum of its parts."

"What Australia has been able to do during this global recession is to maintain a degree of optimism about the future that has not been characteristic of any other advanced economy."

However, the treasurer warned the economy would still suffer from the lingering effects of the global financial crisis.

"But the fact is the impacts of this global recession are still with us for some time to come," Swan said.

Source:Xinhua