Australian Treasurer Wayne Swan is confident about the actions undertaken by the Government to overcome recession. He declared that the Government’s decision to withdraw fiscal stimulus gradually, is appropriate.

It has been reported that Australia is better off compared to other developed nations. Many businesses are optimistic and agree with the action of the Government.

However, retailers opine that following the withdrawal of the fiscal stimulus, demand is falling. Property developers also state that after grants to first home buyers have been reduced, the demand has decreased.

As per reports, this withdrawal of Government stimulus, including Australian Dollar 22 billion ($20.5 billion) on roads, ports and schools, is in keeping with the tightened monetary policy of the Reserve Bank of Australia. The economy of the country has managed to evade the worst of the global recession.

It has been reported that policy makers from countries like India and China have joined Australia in withdrawing monetary stimulus this year. This was done to head off asset-price bubbles since the region is moving towards global growth.

Wayne Swan remarked, the rise in borrowing costs “is a painful reminder that as the economy recovers, the RBA will continue to move rates from their emergency levels during the global recession to more normal settings”.