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Australia's economy buoyed by growth outlook in China, India

(Agencies)
Updated: 2011-06-20 15:39

Australia's economic outlook is strong because robust growth in the Asia region led by India and China continues to drive demand for commodities, according to Treasurer Wayne Swan.

"Strong demand for our commodities is underpinning an unprecedented pipeline of business investment," Swan said in an e-mailed statement. He was commenting after the International Monetary Fund maintained its forecast for economic growth in India and China in its World Economic Outlook.

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China's economy is likely to grow 9.6 percent this year while India gross domestic product will increase 8.2 percent, the IMF said, adding that the downside risks for the global economy have intensified. The Washington-based agency reduced its growth forecast for the US for the second time in two months, warning that further setbacks to a recovery pose growing threats to the world economy.

Swan said Australia is positioned to withstand risks of further financial instability as the economy adds jobs and the government reduces debt.

"Our economic scorecard remains the envy of the developed world," he said.