Fed: Economy resilient - Costello

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Fed: Economy resilient - Costello

CANBERRA, April 15 AAP - Australia's economy had had a rough 12 months, but was resilient,Treasurer Peter Costello said today.

"We've been through a pretty rough 12 months - international downturn, high oil prices,war and drought," Mr Costello told Sydney radio 2UE.

"And normally the Australian economy would be in severe recession by now.

"And the fact that it's still growing indicates how resilient it's been."

The drought, which was the worst drought in a century, had cost hundreds of millionsof dollars, he said.

Australia's east coast property boom was slowing, with prices stabilising not sucha bad thing, Mr Costello said.

"We had very large price rises through the course of the last several years and sooneror later prices have got to stabilise," Mr Costello said.

"And I think there is evidence of that happening, yes."

AAP lm/gl/jlw

KEYWORD: ECONOMY COSTELLO