Australia » Outlook

International Property Brokers forecast that GDP growth is expected to average 3.1% a year in 2007-08, supported by export expansion, solid growth in domestic demand and, in 2008, improved rural conditions. After shrinking in 2006, the current-account deficit will expand in 2007 before narrowing again in 2008.

High interest rates and the return of drought conditions are likely to take their toll on economic growth. Despite this, the Australian dollar has remained strong, and will average A$1.33:US$1 in 2006 before easing back in 2007-08.