Fed: Return of resources boom to ease pressure on budget

AAP General News (Australia)
04-27-2010
Fed: Return of resources boom to ease pressure on budget

The re-emergence of a resources boom is expected to improve the budget bottom line
.. taking pressure off the Rudd government .. with debt to peak well short of previous
predictions.

But borrowers are expected to bear the brunt of the recovery .. with Access Economics
warning interest rates will rise to above normal levels as the economy picks up pace.

In its latest Business Outlook report .. Access says the return to rapid industrialisation
in China .. and other resource-hungry countries .. has led to a boost in key commodity
prices .. reinvigorating Australia's economic landscape.

It says by late this year and next year .. Australia may find itself back where it
was in mid-2008 .. both a beneficiary and a victim of a fully fledged resources boom.

AAP RTV kms/sb/klw/psm/

KEYWORD: ECONOMY ACCESS (CANBERRA)

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