Australia’s Economy ‘Growing Solidly,’ Treasurer Swan Says

Australia’s economy is “growing solidly” and capital expenditure by businesses is forecast to rise 32 percent to a record A$158 billion ($161 billion) this financial year, Treasurer Wayne Swan said yesterday.

“That spending, although a drag on productivity now, will increase our economy’s capacity down the track,” Swan said in his weekly economic note. His office also released for public comment an interim report on the tax treatment of losses, in a move he said could “encourage investment in businesses that are struggling or that are just starting up.”