New figures on Wednesday are set to point out Australia’s financial system grew sluggishly within the June quarter, because it was handled blows by larger rates of interest, value pressures and a Chinese slowdown.
But the Treasurer stays optimistic that regardless of stagnant development, Australia isn’t on monitor for a recession.
The nationwide accounts, which measure development within the financial system, might be launched by the Australian Bureau of Statistics on Wednesday morning.
Ahead of their launch, Treasurer Jim Chalmers warned that development was more likely to be “relatively flat”.
While the Reserve Bank on Tuesday left the money fee regular for the third month in a row at 4.1 per cent, Dr Chalmers mentioned the flow-on results – coupled with worldwide uncertainty – had been “bucketing” the financial system.
“It’s already clear to us that a combination of things like these interest rate rises, plus the international uncertainty represented by the slowdown in China and elsewhere, is having an impact on our economy,” he informed ABC News.
“It is slowing our economy. Particularly when it comes to household spending – we have seen retail figures and other consumption data slow down quite considerably.
“It’s already clear to us the Australian economy is being bucketed by international uncertainty and higher interest rates.
“And we do expect growth in the economy to be relatively flat over the next 12 months or so.”
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He mentioned Australia “had things going for us” regardless of the substantial challenges, particularly the “strong labour market, exports, education and tourism”.
“We’ve got the budget in much better nick in case we need to respond at some future point, so we’ve got things going for us, but the challenges to our economy are substantial” he informed ABC Radio.
Unable to offer full certainty that Australia would dodge a recession, Dr Chalmers mentioned Treasury could be conserving an in depth eye on China in addition to the continued implications of home inflation.
“Our expectation, our forecast in the budget, are that the Australian economy will continue to grow,but quite slowly,” he mentioned.
In the three months to March, the financial system grew simply 0.2 per cent – 2.3 per cent on an annual foundation.
Economists had been barely extra optimistic concerning the June figures forward of their launch.
Source: www.perthnow.com.au
