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Australia's Swan Says Economic Recovery Remains Fragile

CANBERRA -(Dow Jones)- Australian Treasurer Wayne Swan said Wednesday that the country's economic recovery remains fragile and some "hefty challenges" remain ahead.

Swan was commenting after the Australian Bureau of Statistics reported that retail sales fell unexpectedly in September, as the withdrawal of government economic stimulus and concerns over an imminent rise in interest rates hit spending.

The treasurer said a big decline in hours worked is "bearing down on household incomes", while falls in global commodity prices are denting export earnings and business profits.

"Despite the improved outlook in our region, a sustained recovery in the major advanced economies is by no means assured," Swan said in emailed comments.

"For these reasons, we judge that the planned gradual withdrawal of stimulus remains appropriate after it reached its peak impact in the June quarter this year," he said.

-By Rachel Pannett, Dow Jones Newswires; 61-2-6208-0901; rachel.pannett@ dowjones.com

  (END) Dow Jones Newswires
  11-03-092211ET
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