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02-16-2011, 07:39 PM
SYDNEY (MarketWatch) - The Australian economy should grow "strongly" over the next years, even as floods and other recent weather events affect the country in the near term, according to Philip Lowe, assistant governor of the Reserve Bank of Australia, in a speech. "Developments in global commodity markets and the attitudes of Australian consumers to spending are likely to have an important bearing on how our economy evolves over the next year or so," Lowe said. On the future pattern of consumer spending, Lowe said that the bank has assumed a middle path, with the saving rate likely staying high but consumption growth broadly matching income growth over the next couple of years.
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