The Australian economy recorded another outstanding performance in 1999, with real gross domestic product expanding by an estimated 4.3 per cent (the average annual growth rate since the last recession in 1991) The December 1999 Organisation for Economic Cooperation and Development (OECD) survey of the Australian economy argued that 'the basis for the continuation of the strong domestic demand had been laid by a judicious mix of sound macroeconomics and structural policies'. This improved policy mix, which had its genesis in the more volatile business cycles of the 1980s, has brought inflation under control, largely eliminated budget deficits and more than halved public debt, and underpinned an acceleration in productivity growth. For as long as there is no dramatic shift in these policies, the combination of low inflation and strong economic growth is likely to continue in the coming year.
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