No room for complacency: Swan

Treasurer Wayne Swan says there is no room for complacency as the Australian economy
grew by a lower-than-anticipated 0.2 per cent in the September quarter.
"Conditions are improving but I think the accounts today provide a cautionary
reminder that there is some way to go before our growth momentum becomes self
sustaining," he told reporters in Canberra.
"We see reasons for confidence but no reason for complacency."
Gross domestic product (GDP) grew by 0.2 per cent in the three months to the end of
September, taking growth for the year to 0.5 per cent.
Economists forecasts had centred on 0.4 per cent growth in the September quarter,
for an annual rate of 0.7 per cent.
In a statement accompanying his press conference, Mr Swan said the national accounts
showed the international community still faced challenging economic conditions.
"While economic conditions are clearly improving, today's national accounts show
that Australia's economic recovery still has a way to go," he said.
"The stimulus continues to provide crucial support and the gradual phased withdrawal
that is already underway remains appropriate as the global recession washes through
the Australian economy."
The stimulus measures had provided vital support to the economy, Mr Swan said.
"Treasury estimates that fiscal stimulus added 0.4 of a percentage point to GDP
growth in the September quarter.
"Without the stimulus the economy would have contracted in the September quarter by
about 0.2 per cent."
The government argued without the stimulus, the economy would have contracted in
each of the past four quarters, shrinking by two per cent during the past year.
"Instead, with the help of fiscal and monetary stimulus, Australia has continued to
outperform and outgrow nearly all other advanced economies," Mr Swan said.
"Among the world's advanced economies, Australia is one of only three economies to
have grown in the year to the September quarter."
Mr Swan says the positive growth result means more jobs and business.
"There are tens of thousands of Australians that are now in jobs who would have been
without jobs this Christmas," he told reporters.
"There are tens of thousands of small businesses whose doors are open, with
customers ... this Christmas."
Mr Swan said Australia's economy had fared better than any other major advanced
countries, avoiding four quarters of negative growth and recording only one.
The government's infrastructure stimulus had driven a 6.2 per cent increase in
public investment in the quarter.
"That's been going some way to offsetting the falls in private investment," he said.
Mr Swan said all that good news was even before confidence data was taken into
consideration.
"The confidence figures of Australia are simply stunning when compared with the rest
of the world."
Mr Swan warned there were still worrying signs about the Australian economy.
"What we've seen over the past year is the biggest fall in export prices on record
(of) -19.5 per cent.
"The second biggest fall in business profits (of) -16.3 per cent."
These were the challenges that remain, he said, also noting income growth rose by
only 0.2 per cent thanks to a reduction in work hours.
Meanwhile, private business investment "remained weak", falling by 2.5 per cent in
the quarter.
Opposition Leader Tony Abbott's calls to withdraw stimulus spending were a
"dangerous misjudgment", Mr Swan said.
"He has learned very little ... in the short time that he has been leader."
Mr Swan said the growth had been a community effort.
"It's been employers, employees working together and the community working together."
He refused to say whether more stimulus was in the pipeline, but said the
government's measures had been designed to peak in the June quarter.
Meanwhile, Opposition treasury spokesman Joe Hockey called on the government to pull
back its huge spending program.
"Otherwise interest rates are going to go up much higher than they need to be," he
told reporters in Canberra.
"We are now entering a period where monetary policy and fiscal policy appear to be
working in different directions."
The more the government spent the greater the upward pressure on interest rates, Mr
Hockey said.