Don’t waste the boom, IMF warns

The International Monetary Fund (IMF) says the Australian Government should use revenue from the mining boom to support its ageing population.

In the report, the IMF also warned that increasing dependence on mining will make the country susceptible to commodity price fluctuations, according to the ABC.

It says the country should save the revenue from the current boom, as the current median age of Australians sitting at nearly 38, and increasing annually.

It suggested money should be used to fund rising health care costs.

However, it did outline Australia’s growing economic independence from the US, stating that "the impact of US GDP shocks on Australia is no longer statistically significant.”

It outlined that between 1991 and 2010, a 1% shock to US GPD resulted in a half percent move in Australian growth, reports The West Australian.

Instead, Australia has turned its focus to Asia.

The IMF report stated that it “reflects both the increase in emerging Asia’s economic size and Australia’s growing integration with emerging Asia.”

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