Fed: Abbott a capital "r" risk to the economy - Rudd

AAP General News (Australia)
04-22-2010
Fed: Abbott a capital "r" risk to the economy - Rudd

HOBART, April 22 AAP - Prime Minister Kevin Rudd says the opposition's calls to wind
back stimulus spending represent a "capital R risk" to the economy.

Mr Rudd said plans from Opposition Leader Tony Abbott to wind back stimulus spending
would undermine precarious regional economies.

"This plan from Mr Abbott would cause economic chaos and would pull the rug from under
the economy," Mr Rudd told reporters in Hobart on Thursday.

"Literally thousands of small businesses would go to the wall.

"On the economy, Mr Abbott represents a capital R risk."

Mr Abbott said on Thursday the Howard government could take a lot of credit for Australia's
strong showing in a recent international report.

In its latest World Economic Outlook released on Wednesday, the International Monetary
Fund (IMF) now expects Australian growth to reach 3.0 per cent in 2010, up from a forecast
of 2.5 per cent in January.

It expects growth to accelerate to 3.5 per cent in 2011, following 2009 growth of 1.3
per cent, almost double the rate the IMF had forecast.

Mr Rudd dismissed Mr Abbott's claims, saying the strong showing was due entirely to
stimulus spending.

"He should focus on one core fact, and that is that he and his party opposed the government's
national economic stimulus strategy," he said.

"That strategy has been validated by the World Bank, the International Monetary Fund
and the OECD as the basis upon which the economy stayed out of recession.

AAP pbc/it

KEYWORD: ECONOMY RUDD

� 2010 AAP Information Services Pty Limited (AAP) or its Licensors.