Business Investment Set to Drive Growth The Australian economy strengthened as 2001 progressed, with strong growth forecast for 2002-03. A pick up in business investment should drive this growth, accompanied by low inflation and falling unemployment.
The Australian economy rebounded strongly in 2001 after a growth pause in the second half of 2000.				bouncing back to stronger growth
Strong economic growth is set to continue in 2002-03, aided by an improved world economic outlook. The unemployment rate is expected to fall gradually from an average of around 6¾ per cent in 2001-02 to around 6 per cent by mid 2003.				falling unemployment expected in 2002-03
Strong growth in business investment in 2002-03 should drive overall economic growth. Low interest rates, higher business confidence, solid profitability and an improved world economic outlook underpin these favourable business investment prospects.				business investment to drive growth, with low interest rates, inflation in check and a moderate current account deficit
Inflationary pressures remain in check, with inflation expected to be within the 2-3 per cent target band.
Stronger business investment will be reflected in higher imports. The current account deficit will rise from recent lows, but remain moderate by historical standards.
Economic Forecasts(a) (a) Percentage change from previous year, unless otherwise stated.