Chalmers Predicts Slower Growth, No Recession Amid Oil Shock
Australian Treasurer Jim Chalmers stated that Australia is not expected to enter a recession despite the significant oil shock resulting from US military intervention in Iran. However, he warned of a period characterized by slower economic growth and elevated inflation. Speaking at the IMF and World Bank Group Spring Meetings in Washington, Chalmers emphasized the need to calibrate the upcoming May 12 budget to these uncertain international conditions, focusing on resilience and reform. He highlighted that while the government models various scenarios, the current expectation is continued but decelerated growth. Chalmers stressed the urgent need for an end to the Middle East conflict to restore free shipping passage in the Strait of Hormuz and normalize global energy prices. He engaged with G-20 counterparts, including representatives from Japan, China, and the UK, to discuss fuel security and supply chain robustness. Although dialogue towards a ceasefire is welcomed, Chalmers cautioned that global economic normalization will take time, with conditions potentially worsening before improving. The Treasurer noted that Australians are already paying a hefty price for the conflict through higher fuel costs.
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Chalmers Predicts Slower Growth, No Recession Amid Oil Shock
Australian Treasurer Jim Chalmers stated that Australia is not expected to enter a recession despite the significant oil shock resulting from US military intervention in Iran. However, he warned of a period characterized by slower economic growth and elevated inflation. Speaking at the IMF and World Bank Group Spring Meetings in Washington, Chalmers emphasized the need to calibrate the upcoming May 12 budget to these uncertain international conditions, focusing on resilience and reform. He highlighted that while the government models various scenarios, the current expectation is continued but decelerated growth. Chalmers stressed the urgent need for an end to the Middle East conflict to restore free shipping passage in the Strait of Hormuz and normalize global energy prices. He engaged with G-20 counterparts, including representatives from Japan, China, and the UK, to discuss fuel security and supply chain robustness. Although dialogue towards a ceasefire is welcomed, Chalmers cautioned that global economic normalization will take time, with conditions potentially worsening before improving. The Treasurer noted that Australians are already paying a hefty price for the conflict through higher fuel costs.
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