Economic Update March 2012

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Running Time: 5:12

Date: 01/03/2012

Things won't improve much in 2012 - but next year's looking much more promising.

A lack of business confidence and continuing political instability mean things won't improve much in 2012, advises economist Professor Neville Norman of Melbourne University, though he still expects interest rates to come down a little as the year progresses. He doesn't expect the Federal Government to achieve its much-talked-about budget surplus in May, but forecasts an upturn in the economy in 2013, when interest rates will also start to climb again. For business, he recommends building long-term customer relationships based on realistic pricing, in order to take advantage of the better times next year.