Page 15 - Climate Control News November 2021

IMF predicts rebound for Australia in 2022
THE INTERNATIONAL MONETARY Fund has cut its forecast for Australia’s economic growth this year, but has forecast a solid re- bound next year as restrictions ease and the economy reopens.
In its latest World Economic Outlook report released last month the global economy will ex- pand by 5.9 per cent this year, down slightly from its six per cent forecast in April.
The IMF attributed the downgrade to supply chain disruptions caused by COVID-19.
In Australia, where extended lockdowns and consumer and employer uncertainty have hit jobs and spending, the IMF expects growth to reach 3.5 per cent this year, down from its earlier prediction of 5.3 per cent.
Despite this the IMF upgraded Australia’s forecast for next year from three per cent to 4.1 per cent.
The IMF’s executive board
warned that governments
and central banks have to
walk a fine line between engineering growth and guarding against increased financial system risks such as soaring house prices which are up more than 20 per cent in Australia.
“In a worst-case scenario, the house price de- cline over the next three years is estimated to be about 14 per cent in advanced economies and 22 per cent in emerging markets – somewhat higher than their pre-COVID-19 levels,” the report said.
With prices in Sydney and Canberra, for ex- ample, rising at their fastest pace in more than three decades, Australia is one of a group of countries, including the US, UK, New Zealand and Canada, where fiscal and monetary pan- demic relief has further pumped up the hous- ing market. ✺
TOP: International Monetary Fund headquarters in Washington.
ABOVE: Housing commencements are falling.
CLIMATE CONTROL NEWS NOVEMBER 2021 15
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