APRIL 2010

Economic Update

Professor Neville Norman, Melbourne University

The good news on the Australian economy is still outweighing the bad. But Professor Neville Norman of Melbourne University says the same is not true in much of the rest of the world, so there's still room for caution. Debate on other policy issues is now emerging as the focus moves away a little from the economy. But the pre-election Federal Budget will drag it back to centre stage in May, as will the Henry Taxation Review when the Government stops sitting on it. Budget forecasts will be revamped from last year's gloomy levels. Overall, the outlook for business in 2010/11 is good, but there'll be less help from government, higher interest rates and - probably - lower exchange rates.