The stimulus to lift economic gloom
Tax cuts, record low-interest rates and a pipeline of coal and iron ore exports to China are pointing to good news for Australia’s economy.
The Morrison government’s election win is also predicted to improve business and consumer confidence after both measures fell due to uncertainty about the May 18 result.
“The Australian economy does face some challenges but it also continues to grow.”But shadow treasurer Jim Chalmers says there is “troubling complacency” in government ranks over the real state of the economy, which is still struggling despite the good news Deloitte is predicting.
“The drought and the downturn in housing prices are hurting the Australian economy, but the global slowdown has so far been good news for Oz,” Deloitte partner Chris Richardson says.
“Treasurer Josh Frydenberg said changes to lending rules would free up cash for spending, while interest rates are now at one percent.
“There’s also real money flowing to Australians and to the kitchen table, to the hip pocket, as a result of the tax cuts, interest rate cuts and the other initiatives that we have taken,” he told reporters in Townsville.