TRANSCRIPT
THE HON PETER COSTELLO MP
Treasurer

The Westin Hotel
Sydney

Thursday, 17 July 2003

11.00am

SUBJECTS: US Economy

JOURNALIST:

…(inaudible) US economy…

TREASURER:

I will just say this. Obviously we want to see a recovery in the US. I am sure

that the US economy will recover, but the pace of the recovery has disappointed

so far. I hope that the US does, recovery does strengthen in the course of 2004,

that will be a good thing for Australia. It has been a very difficult global

environment, with Europe weak and Japan subdued, the US is carrying global growth.

And until such time as there is a strengthening of the US recovery, global growth

will be down.

JOURNALIST:

Did you find it confusing the expected higher growth but also the cut in interest

rates?

TREASURER:

Well, let me put it this way. I hope they are right about the pick-up in 2004,

but you have got to remember this, we have been waiting for the US recovery

for some time and it has disappointed in 2002 and it has disappointed in 2003.

Now, they are getting optimistic about 2004. Let’s hope they are right.

JOURNALIST:

…and not confused that the response on one hand saying…

TREASURER:

I think what Greenspan is saying, is, he is saying that with monetary policy

as stimulatory as it is, that this should aid growth. And as I said, to date

recovery has been delayed and disappointing. But you would expect sooner or

later, that this will have an effect. Let’s hope that it has an effect

in 2004. Thanks.

JOURNALIST:

…(inaudible) US economy…

TREASURER:

I will just say this. Obviously we want to see a recovery in the US. I am sure

that the US economy will recover, but the pace of the recovery has disappointed

so far. I hope that the US does, recovery does strengthen in the course of 2004,

that will be a good thing for Australia. It has been a very difficult global

environment, with Europe weak and Japan subdued, the US is carrying global growth.

And until such time as there is a strengthening of the US recovery, global growth

will be down.

JOURNALIST:

Did you find it confusing the expected higher growth but also the cut in interest

rates?

TREASURER:

Well, let me put it this way. I hope they are right about the pick-up in 2004,

but you have got to remember this, we have been waiting for the US recovery

for some time and it has disappointed in 2002 and it has disappointed in 2003.

Now, they are getting optimistic about 2004. Let’s hope they are right.

JOURNALIST:

…and not confused that the response on one hand saying…

TREASURER:

I think what Greenspan is saying, is, he is saying that with monetary policy

as stimulatory as it is, that this should aid growth. And as I said, to date

recovery has been delayed and disappointing. But you would expect sooner or

later, that this will have an effect. Let’s hope that it has an effect

in 2004. Thanks.