Treasurer Describes Australian Economic Conditions as ‘Soft’ Amid Recession Concerns
Federal Treasurer Jim Chalmers is cautious in declaring a recession for Australians despite the latest inflation figures released by the ABS.
Chalmers stated that the current economic conditions are described as “soft,” raising concerns about a potential recession in the country.
Addressing reporters on Aug. 1, Chalmers expressed that the economy is facing significant pressures.
“I acknowledge that people are feeling the effects of a soft economy and are under pressure,” he mentioned to reporters.
He attributed this softness to various factors such as interest rate hikes and global economic uncertainties that were slowing down the economy.
During the June 2024 quarter, inflation saw a 1.0% increase, mirroring the previous three months.
The key drivers of inflation include housing expenses, food, and transportation costs.
Chalmers highlighted the negligible growth in the economy observed in the first quarter of the year along with a reduction in household savings and soft retail trade figures.
He affirmed that Australians were aware of the difficulties and emphasized Labor’s approach to providing relief for the cost of living.
On ABC Radio, Chalmers reiterated the persistence of high inflation and the effectiveness of their budget strategy in managing it.
In response to allegations from Opposition Leader Peter Dutton, Chalmers defended Labor’s budget strategy, stating that it aimed to alleviate financial pressure instead of exacerbating it.
He highlighted the government’s achievement of consecutive surpluses and noted that the country’s surplus was boosted by the rise in global commodity prices, particularly iron ore and coal.
