The federal government said the IMF and the government’s approach to managing the economy is responsible, makes key investments in growth and resilience, and begins the hard work of budget repair.
“The IMF has provided a glowing report card for our budget and our economic plan,” Mr Chalmers said.
“The independent assessment from the IMF backs our strategy to build a stronger, more inclusive and more resilient economy that can better withstand future shocks.”
In a report, the IMF said new spending measures (in the October budget) provide targeted cost‑of‑living relief and address structural economic issues by alleviating labour and skills shortages, promoting productivity growth, and facilitating the climate transition.
The report is done as part of the IMF’s regular country assessment of Australia.
The IMF report acknowledges the government’s spending restraint helps address the inflation challenge in the economy and avoids making the job of the Reserve Bank harder.
“Near‑term fiscal restraint will help support monetary policy in holding back excess demand,” the IMF report stated.
The IMF welcomed the government’s policies to promote cleaner, cheaper, and more reliable energy including the Safeguard Mechanism, which it is said will help drive down emissions in an efficient manner.
The IMF also endorses other key Albanese government policies including expanded parental leave, cheaper childcare, and more university and fee‑free TAFE places that will help boost labour supply and women’s workforce participation as well as address critical skills shortages in the economy.
The IMF confirms that despite a difficult year ahead, Australians have every right to be optimistic about the future of the economy.
