OECD FORECASTS SLOWER GROWTH RATE FOR AUSTRALIA IN 2002.

AsiaPulse News, November, 2002

CANBERRA, Nov 22 Asia Pulse - The Organisation for Economic Cooperation and Development (OECD) has forecast a slower economic growth rate for Australia in 2002.

The 30-member OECD said Australia's 2002 growth rate would slow to 3.5 per cent from its previous forecast of 3.75 per cent.

Growth in 2003 would bounce back to 3.7 per cent, but this was down from the four per cent forecast the OECD gave in April.

It said low interest rates and an expected improvement in the global economy would keep economic growth robust, despite the drought and a likely downturn in the housing market.

But interest rates would rise to keep inflation under control and government spending would tighten, it said.

"The favourable economic outlook should...