Fed: Unemployment will rise higher than the forecast 7pct: Swan

AAP General News (Australia)
04-02-2009
Fed: Unemployment will rise higher than the forecast 7pct: Swan

WAYNE SWAN says Australia's unemployment rate will climb higher than the government's
previous forecast of seven per cent.

The OECD's reccently tipped unemployment will reach an average of 10 per cent across
the developed world .. while growth is projected to shrink by 4.3 per cent.

The Treasurer's told ABC Television this means Australia's growth will be slower ..

and unemployment higher than forecast in February .. but that these forecasts will be
updated in the May budget.

Mr SWAN's played down the implications of February's retail sales figures .. released
today .. which show retail spending suffered its biggest monthly slump since the introduction
of the GST in 2000.

The treasurer's denied it shows how quickly the effects of the Rudd government's stimulus
packages are exhausted .. saying sales were still above November's level.

He says retail sales and consumption in Australia are holding up in a way not seen
in just about any other developed country in the world.

AAP RTV mj/tm

KEYWORD: ECONOMY SWAN (CANBERRA)

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