Treasurer warns of slower growth and rising unemployment

Summarised from 2 outlets · Updated 22 Oct, 23:50 · Archive

Australian Treasurer Jim Chalmers has warned of softer economic growth and rising unemployment, speaking at a business forum in Sydney less than two weeks before a likely fifth interest rate hike this year. He said Treasury is revising its numbers for the mid-year update and expects higher interest rates and inflation to result in slower growth and slightly higher unemployment.

Mr Chalmers attributed economic risks to the wars in Ukraine and Iran, which he said impact almost every economy by pushing up global inflation and borrowing costs. He also cited the largest economies holding much more debt and intense investment in artificial intelligence. The Australian sharemarket puts a 62 per cent chance on rates being hiked on Melbourne Cup day in November.

Defending his government's economic record amid debate over whether public spending is driving inflation, Mr Chalmers said Australia's economy is growing faster than almost every G7 economy, with the International Monetary Fund expecting this to continue for at least five more years. He said growth is overwhelmingly driven by private sector activity, with private demand picking up while public demand has eased.

How it is being reported

• Treasurer Jim Chalmers warns of rising unemployment, slowing economyTreasurer Jim Chalmers has warned of softer economic growth and rising unemployment less than two weeks before a likely interest rate hike.The West Australian · 22 Oct, 23:14
• Treasurer Jim Chalmers warns of rising unemployment, slowing economyTreasurer Jim Chalmers has warned of softer economic growth and rising unemployment less than two weeks before a likely interest rate hike.Perth Now · 22 Oct, 23:14

In this story: Jim Chalmers · Australia · Ukraine · Iran

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