Sydney – On Monday, Australia’s treasurer issued a warning, citing developments in the Middle East as a source of concern for the world economy. These developments will influence the government’s May budget, which will include downgrades to the country’s major trading partners’ near-term outlook.
Treasurer Jim Chalmers stated in a statement that “events in the Middle East are casting a shadow over the global economy, compounding the concerns about lingering inflation and weaker growth.”
Chalmers recently returned from a trip to Washington, D.C., where he attended G20 finance minister and central banker meetings.
“Given the global challenges coming at us, the May Budget will put a premium on responsibility and an emphasis on security,” he stated.
“Relieving cost-of-living pressures, repairing our budget and reforming our economy is the best antidote to the kinds of risks that we see escalating around the world.”
Additionally, the Treasury will lower its growth projections for nations including China, Japan, and the United Kingdom.
Lowering its prediction for China’s growth in 2019 by 0.25 percentage points to 4.25%, it will, however, slightly increase it to 4.75% for 2024. Moreover, Japan’s prediction for this year has been cut to 0.75%, reflecting a decrease of 0.25 percentage points.
For the fiscal year that concluded on June 30, the government is anticipated to declare a budget surplus. However, due to declining commodity prices and a softening labor market, the revenue increase would be less than in the previous year.
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