IMF backs Australia’s responsible economic plan

The International Monetary Fund has overnight strongly endorsed Australia’s responsible economic management at a time of growing uncertainty for the global economy.

The IMF recognises the Albanese Labor Government’s approach to managing the economy is responsible, makes key investments in growth and resilience, and begins the hard work of budget repair.

The IMF has provided a glowing report card for our budget and our economic plan.

The independent assessment from the IMF backs our strategy to build a stronger, more inclusive and more resilient economy that can better withstand future shocks. 

“New spending measures (in the October Budget) provide targeted cost‑of‑living relief and address structural economic issues by alleviating labour and skills shortages, promoting productivity growth, and facilitating the climate transition,” the IMF said in a report as part of its regular country assessment of Australia.

Importantly, the IMF report acknowledges the Government’s spending restraint helps address the inflation challenge in our economy and avoids making the job of the Reserve Bank harder.

“Near‑term fiscal restraint will help support monetary policy in holding back excess demand,” the IMF said.

The IMF welcomes the Government’s policies to promote cleaner, cheaper and more reliable energy, including the Safeguard Mechanism, which it is says will help drive down emissions in an efficient manner.

The IMF also endorses other key Albanese Government policies – including expanded parental leave, cheaper childcare, and more university and fee‑free TAFE places – that will help boost labour supply and women’s workforce participation as well as addressing critical skills shortages in the economy.

The report is another reminder that in the face of a challenging international outlook, our economy has a lot going for it: historically low unemployment, good prices for our exports, and the beginnings of wages growth after a decade of stagnant wages.

The IMF confirms that – despite a difficult year ahead – Australians have every right to be optimistic about the future of our economy and our country.

The Albanese Government is committed to its plan to make our nation’s finances more responsible, our economy more resilient and to support Australians with responsible cost‑of‑living relief that doesn’t add to inflationary pressures.