Economy stable in 2011: report

According to the latest Melbourne Institute Monthly Bulletin of Economic Trends report, the macro team expects greater stability in the economy and modest employment growth in the months ahead.

In addition, the report found that Australia can expect to see mild economic growth – taking overall inflation to the middle of the target (2 to 3 per cent) band.

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But it wasn’t all good news for the economy.

The report’s author Dr Edda Claus said rising housing debt and interest payments to disposable income continued to be a concern.

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