This article deals with developments in the Australian economy in the period from the fourth quarter of 1969 (the quarter for which the latest official estimates of national income and expenditure are available) through to the end of the financial year 1970‐71. It was prepared in May 1970 and brings up to date the forecasts for 1969‐70 and and 1970‐71 published last October in The Australian Economic Review, Number 7, 3rd Quarter 1969. Annual periods shown as 1968‐69, 1969‐70 etc. refer to years ende