IMF expects Australian economy to grow 3.25 percent

The Australian economy is expected to grow by 3.25 percent in 2012, broadly in line with potential, said the International Monetary Fund (IMF) in its preliminary findings released on Thursday. The IMF expects new natural resources-related investment in Australia to reach a record level this year with large projects already committed or under construction. "On the other hand, with an appreciated Australian dollar, uncertain global environment, and sluggish housing construction, investment outside of the resources sector is likely to remain weak in the near term," the IMF said. "We are forecasting some slowdown in the second half of the year but, looking at the entire year it (growth) will land around 3.3 or 3.2 percent," the head of the IMF's Australian mission Masahiko Takeda told reporters in Sydney. However, Takeda said if iron ore prices become even weaker, adjustment to the forecasts would be needed. The IMF said Australia's economy has been growing faster than most advanced countries. But it said growth was uneven in the first half of 2012, with rapidly expanding resources and related sectors contrasting with slow growth in many other sectors.