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RBA DOWNGRADES ECONOMIC GROWTH (1)

November 08, 2019

Today the Reserve Bank downgraded its expectations for economic growth for the third time in six months.

This is another sign of a Morrison Government which has dithered while the economy has deteriorated.

The Reserve Bank has today revised down its forecasts for economic growth in 2019 and 2019-20 and wages growth in 2021.

The Reserve Bank, IMF and OECD have all now lowered their expectations for economic growth under the Liberals.

Australians are struggling, weak consumption is being driven by stagnant wages, household debt is at record highs, almost two million Australians are looking for work or for more work, and retail trade has had its worst result since the 1990s recession but the Liberals have no plan to turn things around.

Among the RBA’s observations in its Statement on Monetary Policy released today, it said that:

  • “Over the past year, growth in the Australian economy has been slow because of soft consumption growth and declines in housing activity and business investment.”
  • “wages growth is low and shows little sign of picking up.”
  • “Domestically, a defining feature of economic developments over the past several years has been very slow growth in household income.”
  • “Over the past year consumption has been significantly weaker than expected.”

Right when the Australian economy needs responsible, proportionate and measured stimulus, Scott Morrison and Josh Frydenberg have a political strategy but not an economic plan.

It is time the Liberals brought forward a budget update to fix their forecasts and properly outline an economic plan that supports the floundering economy and better safeguards it from global risks.

FRIDAY, 8 NOVEMBER 2019

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