Australia's stocktake reveals a healthy ledger

Recent economic forecasts can leave us optimistic about Australia's growth potential for the next few years. Jobs are being created, inflation is low and a gentle pick-up in activity can be expected.

With the federal budget and Reserve Bank of Australia’s Statement on Monetary Policy having been released over the last fortnight, it is a good time for a stocktake on where the Australian economy is and where it is likely to go over the next year or two.

The bottom line is generally good. Some short-term moderation in growth seems likely but medium-term buoyancy can be expected as easier monetary conditions kick in.

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