Daily Bulletin


The Conversation

  • Written by Michelle Grattan, Professorial Fellow, University of Canberra
image

Ahead of next week’s mid-year economic and fiscal outlook, the government has been hit with the sobering news that real GDP shrank in the September quarter. Deloitte Access Economics’ Chris Richardson offers some context to the gloomy figures.

“Perhaps a better way to describe it is the numbers have been artificially good for a while and now they’re looking artificially bad. The bottom line is that for four years now, Australia’s economy has been growing just a little bit below trend and that’s partly because the boom in China has peaked. China has slowed and that is throwing some challenges our way.”

Richardson tells Michelle Grattan he sees a lot that is missing from the debate about how to strengthen the economy and the budget.

“If you asked the person in the street - they’re aware that there are challenges but they don’t really know what they are and that worries me because getting good policies requires a good understanding from the electorate,” Richardson says.

Richardson foresees minimal immediate consequences if credit ratings agencies downgrade Australia’s triple A credit rating in the near future.

“In the short term, it is absolutely not a big deal. … Part of the reason why interest rates are very, very low is that investors are very, very scared and they want to put their money in super safe places and lending your money to the Australian government is still a remarkably safe thing to do right now.

"So yes, there would be a minor impact on the borrowing costs of the Australian government. I cannot get excited about that in the near term.”

Authors: Michelle Grattan, Professorial Fellow, University of Canberra

Read more http://theconversation.com/politics-podcast-chris-richardson-on-the-state-of-the-australian-economy-70415

Writers Wanted

Andrew Forrest's high-tech plan to extinguish bushfires within an hour is as challenging as it sounds

arrow_forward

On the road to COVID normal: the easing of regional Victoria's restrictions signals hope for Melbourne too

arrow_forward

How To Create A Better Impression With Your Business Card

arrow_forward

The Conversation
INTERWEBS DIGITAL AGENCY

Politics

Did BLM Really Change the US Police Work?

The Black Lives Matter (BLM) movement has proven that the power of the state rests in the hands of the people it governs. Following the death of 46-year-old black American George Floyd in a case of ...

a Guest Writer - avatar a Guest Writer

Scott Morrison: the right man at the right time

Australia is not at war with another nation or ideology in August 2020 but the nation is in conflict. There are serious threats from China and there are many challenges flowing from the pandemic tha...

Greg Rogers - avatar Greg Rogers

Prime Minister National Cabinet Statement

The National Cabinet met today to discuss Australia’s COVID-19 response, the Victoria outbreak, easing restrictions, helping Australians prepare to go back to work in a COVID-safe environment an...

Scott Morrison - avatar Scott Morrison

Business News

How To Create A Better Impression With Your Business Card

There’s no doubt that done well, business cards can deliver a lot for a brand. The problem, then, is that there aren’t very many good business cards out there! This is hardly the fault of the bu...

News Company - avatar News Company

Key Strategies to Effectively (and legally) Monetize your Intellectual Property

Let’s be frank: Your intellectual property can potentially make you a lot of money. What is intellectual property? Well, there isn’t necessarily a single definition for this important term but a...

Anton Quintos - avatar Anton Quintos

6 Ways to Help Your Home Based Business Join the Big League

Most of us dream of leaving our tired 9 to 5 jobs, taking ownership over our careers, and starting our own gigs. Up until now, small home-based businesses have proved to be a perfect launching p...

Diana Smith - avatar Diana Smith



News Company Media Core

Content & Technology Connecting Global Audiences

More Information - Less Opinion