Economic Growth

The IMF or International Monetary Fund has revised up their forecasts for world economic output despite record oil prices and natural disasters - the best groth in three decades. Global economy expected to achieve a growth rate of 4.9%, 0.6% higher than previous growth estimates. Predictions for the global growth in 2007 was also boosted to 4.7%, higer by 0.3%. Australia's economy is pegged to grow 2.9% in 2006 and 3.2% in 2007. This World Economic Outlook is releases twice a year in Washington.

Macquarie has forecasted Japan to be the fastest growing G7 nation over the next two years. Macquarie has lifted its forecast for Japanese GDP growth from 3 per cent to 3.6 per cent financial year. This stronger grow is a "reflation" of domestic demand which accounts for structural growth that is largely independent of the state of the global economy.