Australia’s last hope of avoiding recession: ‘It’s not about me’
With the global economy struggling, Australia’s government is warning Australians to avoid making rash decisions, including a massive stimulus package.
Prime Minister Scott Morrison has already announced he will cut the public sector’s deficit in half and said a $12bn package would be enough to keep the economy from hitting a recession.
The government is urging people to save more, and is calling for a “reboot” of Australia’s economy, which is already in the midst of a deep recession.
“There’s no other country where the debt burden is this large, the deficit is so huge,” Treasurer Scott Morrison said.
In recent months, the Reserve Bank has taken action to raise the country’s interest rates, but it’s only partly helping the economy. “
We’re going to take the biggest bite out of the economy and make sure it’s sustainable.”
In recent months, the Reserve Bank has taken action to raise the country’s interest rates, but it’s only partly helping the economy.
The central bank has also lowered the rate it charges on cash, while easing interest rates on debt.
The Federal Government has also cut spending, while cutting public services.
Australia’s economy grew at an annualised rate of 2.5% last year, according to the Australian Bureau of Statistics.
Despite the economic slowdown, the Treasurer said he was confident that Australia could be back in a recession by the end of the year.
But he admitted that would be a long way off, saying: “It’s just not about us.”
“It’s about us, and it’s about the economy.”
Australia was last in the global index of economic growth in April, and in May was last out of sixth place.
With the world economy still struggling, Morrison said he wanted to encourage people to “keep a little more of their money” and keep saving for a rainy day.
In his latest budget speech, Morrison has committed to cutting spending by $12 billion.
He has also promised to ease the interest rate on debt, and he’s set to make more changes to the tax system to help struggling households.
It’s unclear what the new measures will mean for the country.
If the economy starts to suffer again, the country could face a massive financial squeeze.
According to the Reserve Banks projections, the economy could contract by as much as 10% this year.