June 5th 2024.
Treasurer Jim Chalmers sat down for an interview with Today this morning, addressing concerns about the Australian economy. Despite recent data showing the weakest growth in almost three years, Chalmers remains confident that a recession is not on the horizon.
He acknowledged that the gross domestic product only rose by 0.1 per cent in the first quarter of the year, according to the Australian Bureau of Statistics. However, he emphasized that this was not unexpected and the economy is still showing signs of softness and pressure.
Chalmers also pointed out that last year's interest rate hikes and persistent inflation have created uncertain times for many households. This has put a strain on the economy and contributed to its slow growth. He also noted that there are other factors at play.
In light of these challenges, Chalmers emphasized the importance of balancing the fight against inflation without causing harm to the economy. He also highlighted the government's efforts to provide relief to households, such as upcoming tax cuts, energy bill relief, and pay rises for workers on awards.
However, there is still concern over inflation, as highlighted by the head of the Reserve Bank of Australia, Michelle Bullock. In a recent Senate estimates hearing, Bullock expressed the bank's focus on bringing inflation back to target. She stated that inflation is hurting everyone and remains a top priority for the bank.
Despite these challenges, Chalmers remains optimistic and committed to finding responsible solutions to help the economy. He believes that with a balance of measures, the Australian economy can continue to weather these uncertain times.
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