Australia’s finance minister says government is preparing to invest in the strength of recovery

CNBC reports that Finance Minister Mathias Cormann said that after providing initial support for an economy reeling from the coronavirus pandemic, the Australian government is now focusing on the strength of recovery.

“Having provided the initial crisis support to cushion the blow on the economy, on jobs and on working families, what we’re doing now is invest in the strength of our economic recovery moving forward,” Cormann told CNBC. 

“Yes, it is a sizeable deficit in an Australian context, but we went into this crisis in a comparatively stronger fiscal position,” he said, adding that even after the planned expenditure and fiscal support measures announced, Australia’s debt position as a share of GDP remains substantially lower than other advanced economies. 

When asked if businesses, as they face global uncertainties, would take up the government’s offer and kickstart their investment process, Cormann was optimistic. He said Australia’s economic fundamentals were strong before the pandemic hit and that the country is in Asia Pacific, a part of the world that is set to generate most of the global economic growth in decades to come.