Reserve Bank of Australia board member Heather Ridout has said the Australian economy needs “active management” to overcome the slowing mining sector and the high Australian dollar.
Ridout’s comments coincided with the International Monetary Fund’s decision to lower its projection of global growth in 2013 from 3.6% to 3.5%, up 0.3% from the previous year.
Ridout praised the global economy, but said growth in non-mining Australian businesses was difficult at present.
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“You’re seeing reasonably positive results out of China. But the big challenge for us is to be able to achieve a diversified growth model and that’s the big challenge for economic policy over the next 12 months,” Ridout told Dow Jones Newswires.
Australian shares rise after strong offshore lead
The Australian sharemarket has made small gains late this morning, after getting off to a flat start despite a strong lead from the United States
At 11:45 AEST the S&P/ASX200 benchmark was up 2.9 points to 4790.7.
The Dow Jones reached its highest point since well before the financial crisis overnight, up 0.49% to 13,779. The market hasn’t been that high since October 2007.
OZ shares fall on full-year output figures
Shares in OZ Minerals have fallen 5% this morning to $6.92 after the company announced it expects to record a fall in copper production and gold output in 2013.
The company said in the 12 months to December 31, OZ Minerals posted total copper production of 101,737 tonnes, down by 5.57% from last year. Total gold production also fell 12% to 140,746 ounces.