NSW: Interest rate rises led to negative economic growth: Iemma

AAP General News (Australia)
12-07-2006
NSW: Interest rate rises led to negative economic growth: Iemma

SYDNEY, Dec 7 AAP - NSW Premier Morris Iemma blames interest rate rises for the state's
shrinking economy.

He said yesterday's national account figures revealing the NSW economy has shrunk by
0.3 per cent in the third quarter of the year were due to the federal government's inability
to manage inflation.

"The growth figures of yesterday are all down to interest rates," Mr Iemma said.

"Three interest rate rises this year, with the speculation of further ones, that's
what it's down to."

Mr Iemma said the national economy had slowed as a result of federal Treasurer Peter
Costello and Prime Minister John Howard's inability to control inflation, leading to an
increase in interest rates.

AAP krc/bd/klw/it/nf

KEYWORD: ECONOMY IEMMA

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