Darren Cheeseman (Corangamite, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. What does yesterday's International Monetary Fund World Economic Outlook say about the global economy and Australia's performance?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Corangamite for his very important question. The IMF's World Economic Outlook does predict a slowing down in global growth in 2012 and 2013. The recession in Europe and moderating growth in the United States will have an impact in this region as well. Australia is not immune from these developments, and in addition to that we face the challenges of a higher dollar and a cautious consumer, which is putting some pressure on a number of industrial sectors.

However you look at the data, the Australian economy continues to walk tall in the world. The IMF is forecasting that the Australian economy will outperform every single major advanced economy in the world. I know that is something that everyone on this side of the House is extremely proud of. We are also proud of the fact that Australia is now ranked the 12th largest economy in the world based on GDP at market exchange rates. This is a very substantial achievement—up from 15th to 12th. As the Prime Minister has said, we have passed South Korea, Mexico and Spain. This is a very considerable achievement considering that we are the 51st largest country when it comes to population. Becoming the 12th largest economy in the world is a very substantial achievement and it reflects very well on all of the hard work of Australian workers and the hard work of Australian business.

You would have thought that this fact was welcomed by those opposite, but of course it is not welcomed by those opposite. They are talking down the economy. You would have thought that the Leader of the Opposition would stand up just once and welcome a positive piece of economic news for Australia; stand up just once and say, 'Isn't this great for Australia—I'm proud of what has been achieved by Australian workers and by Australian business.' But he will not do that—he is constantly talking the economy down and is constantly at war with the facts. A few weeks ago he said the Australian economy was not growing. Fact: the Australian economy is growing at 3.7 per cent. Last week he compared our economy to the economy of Greece. Greece is in its fifth year of recession. That is a fact.

The Leader of the Opposition may want to run his scare campaigns, but he is not entitled to make up the facts. The fact is that the Australian economy is growing and the fact is that there are challenges globally, but all of us can be confident in the knowledge that we have strong economic fundamentals. When the Leader of the Opposition runs down our economy, he demonstrates how unfit he is for high office.

Darren Cheeseman (Corangamite, Australian Labor Party) Share this | Link to this | Hansard source

Madam Speaker, I ask a supplementary question. The Treasurer spoke about the facts of our economic performance. What do these mean for businesses and working people in my electorate, and why is it important to stick to the facts when talking about our economy?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

It is very important to acknowledge the impact of these policies when it comes to people at the local level right around Australia. For example, in Australia at the moment if you have a $300,000 mortgage you are paying $4,500 less a year in repayments. That is the benefit of lower interest rates—and our interest rates are far lower than anything ever achieved by those opposite. When those opposite were in power there were 10 interest rate rises in a row, after they had promised to keep them at record lows.

When it comes to jobs, when it comes to interest rates, when it comes to investment, Australians know that our economic fundamentals are among the strongest in the world. That is very important given the uncertainty in the global economy. What we need here is an understanding of the facts and an understanding of what good policy is. Scare campaigns will not produce the security that Australian families demand. There is a clear contrast here between a government which is putting in place a range of policies to support employment, putting in place good fiscal policy to ensure there is investment in this country, and the scare campaign from those opposite—a scare campaign which is deeply irresponsible.