Fed: World economy could take growth off Aust, says Costello

AAP General News (Australia)
08-23-2001
Fed: World economy could take growth off Aust, says Costello

CANBERRA, Aug 23 AAP - The slowing US economy would hamper economic growth here, Treasurer
Peter Costello said today.

The United States overnight cut its budget surplus projection by almost $250 billion.

Mr Costello said the US and world economies were weak and it would affect Australia.

"The US economy is weak and the world is weak at the moment," Mr Costello told ABC Radio.

"Japan is in near recession and has been for years. Europe is weakening.

"That will take growth off Australia.

"But in that context, Australia is growing faster than the United States, the United
Kingdom, Europe and Japan.

"We would be growing faster still if the world was stronger but we are growing faster
than those economies.

"It makes the point we have to keep good economic policy going."

AAP lm/ns

KEYWORD: ECONOMY COSTELLO

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