Money
Chalmers optimistic about economy despite negative assessments
Chalmers sees hope in Australia’s economy despite grim national accounts, citing rising wages and tax cuts as positive indicators.
Treasurer Jim Chalmers responded to EY chief economist Cherelle Murphy’s negative view of Australia’s economy, which she described as a “sad economy without much hope.”
Chalmers expressed disagreement with this bleak assessment during an interview on ABC Radio.
He acknowledged the pressure many Australians are facing but noted some positive aspects in the recently released national accounts figures.
Chalmers highlighted that wages are rising, inflation is decreasing, and tax cuts are positively impacting the economy.
He mentioned that these factors contributed to a slight improvement in living standards.
Public spending
However, data from the Australian Bureau of Statistics indicated that without public spending and immigration, Australia would be in recession.
The economy grew by only 0.3 percent in the September quarter, which was below expectations.
Annual growth decreased to 0.8 percent, representing the worst performance outside the COVID-19 pandemic recession since 1990-91.
In per capita terms, the economy contracted by 0.3 percent for the seventh consecutive quarter.
This decline has resulted in a 2.2 percent drop in net national income per person over the past year, equating to a loss of $1,660.