A soft landing is assumed but not assured, Treasurer Jim Chalmers says.
Beating inflation is still the main game but the federal treasurer says Australia’s focus will soon shift to keeping the economy growing.
Jim Chalmers said his government’s budget setting and policies would then adapt to those changing conditions but stopped short of committing to economic stimulus.
“What I’m saying is inflation is our major concern, but it’s not our only concern,” he told ABC radio on Thursday.
The treasurer used a key speech to other finance ministers at G20 talks in Sao Paulo, Brazil, to manage expectations ahead of Australia’s quarterly growth figures next week.
“We expect growth in next week’s December national accounts to be quite weak – the inevitable consequence of global uncertainty, higher interest rates, and cost of living pressures,” he said in his speech.
“The soft landing we seek at home and in the global economy is assumed but not assured.”
Dr Chalmers said Japan and UK had tipped into technical recessions in recent months.
“The point that I’ve been making is we are not immune from that and we’re not complacent about that,” he told ABC radio after his G20 speech.
But there were also reasons to be optimistic about the economic outlook.
“Global inflation has peaked, issues in the banking system have been well-contained, and growth in some major economies like the United States has defied expectations.”
Treasury is forecasting a soft landing for Australia, which involves bringing inflation back within the two-three per cent target range while keeping the economy growing, albeit slowly.
Yet inflation has been softening more quickly than first expected, with the consumer price index holding steady at 3.4 per cent in the 12 months to January against expectations of a bounce.
KPMG chief economist Brendan Rynne said the result reinforced his expectation of no more interest rate hikes in this cycle.
“Given the slowing economy, we believe it might reduce the cash rate sooner and faster than currently envisaged,” Dr Rynne said in a note.
The economist said the December quarter GDP figure would be a “close-run thing as to whether they show the economy is going backwards with negative growth”.
“There is a risk that Australia could not only be in a per capita recession – given four out of the previous five quarters showed real GDP per capita declining – but could also tip into a technical recession,” he said.
News Related
-
-
-
FILE PHOTO: A man walks in the Central Business District on a rainy day, in Beijing, China, July 12, 2023. REUTERS/Thomas Peter/File Photo By Joe Cash, Ellen Zhang and Kane Wu BEIJING/HONG KONG (Reuters) – U.S. furniture company head Jordan England thinks his firm’s Chinese suppliers are among the best ...
See Details:
Analysis-West's de-risking starts to bite China's prospects
-
Independent senators are trying a parliamentary tactic last successful 90 years ago to give first responders PTSD protections and end domestic violence discrimination in the workplace. Senators Jacqui Lambie and David Pocock took four elements of Labor’s larger workplace law reform bill and it passed the Senate against the government’s ...
See Details:
'Beyond a joke' Labor won't ensure PTSD protections: MP
-
-
-
-
Photograph: Rod McGuirk/AP The stateless Rohingyan refugee who successfully overturned the legality of indefinite immigration detention was accidentally named in documents published by the high court. The man was identified by his surname in a home affairs department email providing an internal update about the case, which was among documents ...
See Details:
Rohingyan refugee NZYQ accidentally named in documents published by high court
-
Photograph: Rod McGuirk/AP The stateless Rohingyan refugee who successfully overturned the legality of indefinite immigration detention was accidentally named in documents published by the high court. The man was identified by his surname in a home affairs department email providing an internal update about the case, which was among documents ...
See Details:
Colorado loses commitments of 2 more high school recruits
-
Photograph: Rod McGuirk/AP The stateless Rohingyan refugee who successfully overturned the legality of indefinite immigration detention was accidentally named in documents published by the high court. The man was identified by his surname in a home affairs department email providing an internal update about the case, which was among documents ...
See Details:
Queensland Health issues urgent patient safety alert over national bacteria outbreak
-
Photograph: Rod McGuirk/AP The stateless Rohingyan refugee who successfully overturned the legality of indefinite immigration detention was accidentally named in documents published by the high court. The man was identified by his surname in a home affairs department email providing an internal update about the case, which was among documents ...
See Details:
Townsville Community Pantry 'distressed' by fruit, vegetable waste at Aldi supermarket
-
Photograph: Rod McGuirk/AP The stateless Rohingyan refugee who successfully overturned the legality of indefinite immigration detention was accidentally named in documents published by the high court. The man was identified by his surname in a home affairs department email providing an internal update about the case, which was among documents ...
See Details:
What Is The Beaver Moon And What Does It Mean For You?
-
Photograph: Rod McGuirk/AP The stateless Rohingyan refugee who successfully overturned the legality of indefinite immigration detention was accidentally named in documents published by the high court. The man was identified by his surname in a home affairs department email providing an internal update about the case, which was among documents ...
See Details:
Labor senator Pat Dodson to resign from politics due to health issues
-
Photograph: Rod McGuirk/AP The stateless Rohingyan refugee who successfully overturned the legality of indefinite immigration detention was accidentally named in documents published by the high court. The man was identified by his surname in a home affairs department email providing an internal update about the case, which was among documents ...
See Details:
Hamas releases 11 more hostages, as Israel agrees to extend ceasefire
OTHER NEWS
Disrupt Burrup Hub group say police have issued move-on notices prohibiting access to the WA site. A group of climate activists and filmmakers say their phones have been seized during ...
Read more »
As individuals, we have unique experiences that affect our mental health and wellbeing, but what about the collective experiences that influence each generation? The mental health of Australians has been ...
Read more »
Syed Ghazaly wants to see the Geraldton abattoir reopen early next year to process 1,000 sheep a day. (ABC Mid West Wheatbelt: Chris Lewis) The new owners of a mothballed ...
Read more »
Carlton coach Michael Voss says he and his players understand there are heightened expectations on them, but insists the Blues are ready to develop individually and in their game plan. ...
Read more »
The Bulldogs’ off-season signing frenzy is set to continue with the club reportedly set to land Cronnor Tracey in a swap deal. The Sydney Morning Herald reports Tracey is expected ...
Read more »
Consumers and impacted businesses are being urged to have their say on the Optus outage, with the federal government laying out the terms of reference for its review into the ...
Read more »
It has been revealed a released immigration detainee is unable to be contacted by authorities. Border Force has referred the matter to the Federal Police as authorities are attempting to ...
Read more »