AUSTRALIA

AUSTRALIA The Australian economy has been one of the OECD's top performers in the 1990s. During its current expansion, now six years old, real GDP has grown by around 3 1/2% a year. After a slowdown in the second half of 1996, growth picked up again last year. In its latest country survey, the OECD forecasts even faster growth this year and next, despite the financial crisis in Asia (which buys some 60% of Australia's exports). Australia has also enjoyed low consumer-price inflation: between 0.9% and 2.3% a year for the past six years. Still, unemployment remains high, at over 8 1/2%. The OECD suggests measures to reduce structural unemployment. These include extending decentralised bargaining to small firms, and discouraging frivolous lawsuits by sacked workers.