FEBRUARY 2010

Economic Update

Professor Neville Norman, Melbourne University

The Australian economy is definitely in recovery mode in 2010, says economist Professor Neville Norman of Melbourne University, but it won't be all plain sailing. As other economists re-align their gloom-and-doom forecasts of a year ago, he foresees a pick-up in retail spending, though not a boom, and only a modest increase in unemployment. There will be further interest rates rises, as the Reserve Bank resume the fight against inflation, but - overall - business will encounter more growing pains than slowing pains.