Invest
2020 vision shows grim economic outlook
The Australian economy is set to be hit hard by COVID-19, new figures from the International Monetary Fund have revealed.
2020 vision shows grim economic outlook
The Australian economy is set to be hit hard by COVID-19, new figures from the International Monetary Fund have revealed.
Federal Treasurer Josh Frydenberg has flagged that the IMF has projected Australia’s economic growth to fall by 6.7 per cent across 2020.
The fund forecast that the global economy will fall by 3.0 per cent over the same period.
By way of comparison, a fall of just 0.1 per cent was recorded at the height of the global financial crisis in 2009.
Despite the grim outlook, the Treasurer highlighted IMF’s expectation that Australia will rebound again in 2021, with growth of 6.1 per cent predicted.
This would see the nation’s economy rebound faster than that of the United States, Canada, Japan, France, Germany and the United Kingdom.
“Australia approaches this crisis from a position of economic strength,” Mr Frydenberg stated.
He said: “Our disciplined economic and budget management saw Standard & Poor’s last week reaffirm Australia’s AAA credit rating, noting that ‘while fiscal stimulus measures will soften the blow presented by the COVID-19 outbreak and weigh heavily on public finances in the immediate future, they won’t structurally weaken Australia’s fiscal position’.”
The Treasurer also flagged the IMF’s finding that the Reserve Bank of Australia had “responded quickly to worsening risk sentiment by injecting $90 billion into the financial system to support small and medium businesses”.
RELATED ARTICLES
About the author
About the author
Economy
Inflation dip welcomed, but employers remain cautious, says JobAdder CEO
As the Australian Bureau of Statistics (ABS) released its latest Consumer Price Index (CPI) figures today, revealing a dip in inflation, industry leaders are cautiously optimistic. However, this ...Read more
Economy
Inflation eases slightly as fuel prices drop, but other pressures remain
Australia's inflation landscape experienced a slight reprieve in April, according to the latest Consumer Price Index (CPI) data released today. The figures reveal that annual inflation has edged down ...Read more
Economy
April inflation report shows mixed signals for Australia's economic outlook
Australia's latest Consumer Price Index (CPI) data has sparked a flurry of analysis from economic experts, revealing a complex picture of the nation's inflationary landscape. State Street, a global ...Read more
Economy
Unemployment rises as job creation declines, says JobAdder CEO
In a revealing analysis of the current job market, Martin Herbst, CEO of JobAdder, has provided insights following the release of the latest Labour Force Data from the Australian Bureau of Statistics ...Read more
Economy
Labour force data reveals unexpected unemployment rise, says State Street economist
In a surprising turn of events, the latest Labour Force data has revealed a significant rise in unemployment, exceeding expectations and signalling a potential shift in the labour market narrativeRead more
Economy
Australian Made Week highlights the importance of local manufacturing in economic resilience
The spotlight is on Australia's manufacturing sector during Australian Made Week, held from May 18 to 24, as business and government leaders emphasise the need to bolster local capabilities, fortify ...Read more
Economy
Federal Budget introduces sweeping changes to tax, investment, and health care sectors
In the wake of the Federal Budget announcement last night, significant reforms are set to reshape the financial landscape for Australians, touching on everything from tax deductions to superannuation ...Read more
Economy
Hot US inflation leaves Fed’s new chair Warsh cornered on rates: deVere CEO
In a climate of escalating inflation and geopolitical tensions, the newly appointed Chair of the Federal Reserve, Kevin Warsh, finds himself in a precarious position regarding interest rate ...Read more
Economy
Inflation dip welcomed, but employers remain cautious, says JobAdder CEO
As the Australian Bureau of Statistics (ABS) released its latest Consumer Price Index (CPI) figures today, revealing a dip in inflation, industry leaders are cautiously optimistic. However, this ...Read more
Economy
Inflation eases slightly as fuel prices drop, but other pressures remain
Australia's inflation landscape experienced a slight reprieve in April, according to the latest Consumer Price Index (CPI) data released today. The figures reveal that annual inflation has edged down ...Read more
Economy
April inflation report shows mixed signals for Australia's economic outlook
Australia's latest Consumer Price Index (CPI) data has sparked a flurry of analysis from economic experts, revealing a complex picture of the nation's inflationary landscape. State Street, a global ...Read more
Economy
Unemployment rises as job creation declines, says JobAdder CEO
In a revealing analysis of the current job market, Martin Herbst, CEO of JobAdder, has provided insights following the release of the latest Labour Force Data from the Australian Bureau of Statistics ...Read more
Economy
Labour force data reveals unexpected unemployment rise, says State Street economist
In a surprising turn of events, the latest Labour Force data has revealed a significant rise in unemployment, exceeding expectations and signalling a potential shift in the labour market narrativeRead more
Economy
Australian Made Week highlights the importance of local manufacturing in economic resilience
The spotlight is on Australia's manufacturing sector during Australian Made Week, held from May 18 to 24, as business and government leaders emphasise the need to bolster local capabilities, fortify ...Read more
Economy
Federal Budget introduces sweeping changes to tax, investment, and health care sectors
In the wake of the Federal Budget announcement last night, significant reforms are set to reshape the financial landscape for Australians, touching on everything from tax deductions to superannuation ...Read more
Economy
Hot US inflation leaves Fed’s new chair Warsh cornered on rates: deVere CEO
In a climate of escalating inflation and geopolitical tensions, the newly appointed Chair of the Federal Reserve, Kevin Warsh, finds himself in a precarious position regarding interest rate ...Read more
