IMF Cautions Australian Government on Spending, Backs Reserve Bank

The IMF believes Australia’s economy is expected to recover gradually, with growth projected to begin picking up in the latter half of 2024.

The International Monetary Fund in Washington, DC. March 27, 2020. Oliver Douliery/AFP via Getty Images

The International Monetary Fund (IMF) has advised the Australian government to adopt a more restrictive fiscal policy to tackle inflation.

While acknowledging that cost-of-living support can temporarily lower prices, the IMF cautioned that it could also stimulate broader economic activity.