Australia risks falling off as US economy returns to global leadership

Australia is cutting spending, curbing wage growth and pushing it back this year as the global economy is accelerating thanks to fiscal stimulus.

Treasury Secretary Josh Frydenberg and Chief Economist Gita Gopinato (Image: AAP, AP)

Australia managed one of the world’s most impressive economic performances in 2020, but still not proud, but importantly, two crackdowns on government spending and wages put us in an economic pack. It seems to be pulled back. this year. At least according to the International Monetary Fund (IMF).

IMF latest world Economic Outlook In this week’s announcement, Australia outperformed most developed countries in 2020, with growth of -2.4%, less than -5% in Europe and -4% in the United States. Most of them are Australia’s isolation, the state’s most effective blockade and contact tracing, JobKeeper, JobSeeker, Morrison’s highly effective financial support through the HomeBuilder program, and aggressive monetary support by the Reserve Bank. It depends on policy easing. ..

However, this year and next year it is becoming less than a star. The IMF expects growth of 4.5% this year and 2.8% in 2022. In contrast, global growth this year is 6%, and in Western Europe 4.5%, 4% and 6.4%. 3.5% in the US and over 5% in both years in the troubled UK. Most of these forecasts have been upgraded-US forecasts have been raised by 1.3 percentage points from the IMF’s 5.1% 2021 forecast in late January, and the estimated rate of October last year when the Trump administration was destroying the US in every way. It was almost doubled.

Dive deeper into important issues.

To access the 21-day trial version for free, register your email address.

Place of originAustralia risks falling off as US economy returns to global leadership

Back to top button