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- Australia Treasurer Chalmers: Latest floods to cut quarter of a percentage point from GDP growth
Australia Treasurer Chalmers: Latest floods to cut quarter of a percentage point from GDP growth
“Widespread floods that have inundated large parts of Australia's southeast will dent the country's economic growth and increase inflation,” Treasurer Jim Chalmers said on Friday, ahead of next week's federal budget, reported Reuters.
Key quotes
Floods will likely detract a quarter of a percentage point from GDP growth in the December quarter, and add 0.1 percentage points to inflation in the December quarter and again in the March quarter.
It is too early for us to put a very precise price tag on the flooding that we are seeing through such large swathes of Australia, but we do know that there will be consequences for the economy and the budget.
My focus is on this inflation challenge, it's about responsible cost-of-living relief, it's about getting wages moving again.
The previous Liberal National government had ‘booby trapped’ the budget with more than A$6 billion ($3.7 billion) in unfunded spending that would have to be covered in the deficit due to be announced on Oct. 25.
AUD/USD fades bounce off intraday low
AUD/USD remains mildly offered as it retreats to 0.6270 while extending the previous day’s pullback from the weekly top.
Also read: AUD/USD Price Analysis: Grinds lower towards 0.6240 support
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