Swan warns economic challenges ahead
Treasurer Wayne Swan has spoken highly of the resilience of the Australian economy in the face of the global recession, but warns challenges still lie ahead.
Speaking at the Australian Business Economists lunch in Sydney yesterday, Swan said that the stimulus helped to boost the Australian economy and keep the recession at bay, but that the economy was not yet out of the woods, and more jobs would be lost.
“The economy is performing better than we had expected at the time of the budget in May,” he said.
However he hinted that the economy will still “operate below capacity for a while yet” and that the unemployment rate will continue to rise.
“The full effects of the fall in Australia’s terms of trade are also still being felt, and this will continue to weigh on domestic incomes. Private business investment and company profitability are still expected to decline,” he added.
Treasurer Wayne Swan has spoken highly of the resilience of the Australian economy in the face of the global recession, but warns challenges still lie ahead.
Speaking at the Australian Business Economists lunch in Sydney yesterday, Swan said that while the stimulus helped to boost the Australian economy, we are not out of the woods yet, and more jobs would be lost.
“The economy is performing better than we had expected at the time of the budget in May,” he said.
However he hinted that the economy will still “operate below capacity for a while yet” and that the unemployment rate will continue to rise.
“The full effects of the fall in Australia’s terms of trade are also still being felt, and this will continue to weigh on domestic incomes. Private business investment and company profitability are still expected to decline,” he added.
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