Australia’s Treasurer, Jim Chalmers, has expressed concerns about the impact of events in the Middle East on the global economy. He recently attended meetings with G20 finance ministers and central bankers to discuss the challenges facing the global economy. Chalmers emphasized the need for responsible budgeting and economic security in the face of escalating risks around the world.
As a result of these global challenges, the Australian government is preparing to release its budget in May. The treasurer highlighted the importance of addressing cost-of-living pressures, repairing the budget, and reforming the economy to mitigate risks posed by an uncertain global economic environment. The treasury is expected to revise down its growth forecasts for major trading partners like China, Japan, and Britain.
The growth forecast for China in 2024 is set to be slightly revised up to 4.75%, but next year’s outlook will be cut by 0.25 percentage points to 4.25%. Similarly, Japan’s growth forecast for this year has also been lowered by 0.25 percentage points to 0.75%. With commodity prices falling and a softening labor market, it is expected that Australia will report a budget surplus for the year ended June 30, albeit with a smaller revenue upgrade compared to last year. Chalmers emphasized that responsible budgeting is essential in navigating these challenges posed by an uncertain global economic environment.
