The Australian government recently announced an AU$42 billion (£19 billion) stimulus plan as it attempts to aid the country’s economy. Wayne Swan, the country’s Treasurer, said that the government would invest $28.8 billion in schools, housing and roads, with another $12.7 billion as cash support for lower income families.
The central bank of Australia also cut its interest rates to 3.25 percent, the lowest rate in 45 years. Prime Minister Kevin Rudd noted that “There is no guarantee of success, but we will throw everything at this because we believe it is important for confidence and jobs that we do so.”
Recently, the government cut its economic growth forecast for 2009 from 2 percent to 1 percent. This new plan is on top of one that was announced at the end of last year, which was worth AU$10.4 billion.
Mr.Rudd said that “To support jobs in the middle of a severe global recession, the government must stimulate the economy in the most immediate manner possible.” Additionally, Mr. Swan noted that “The plan will help support and sustain up to 90,000 jobs over the next two years.”
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