“In the Mid-Year Economic and Fiscal Outlook (MYEFO) released today the Government has taken into account the easing of growth that set in during the second half of 2018 which is proving difficult to shrug off. The revisions to the estimates of output growth, employment, household consumption, incomes and investment have seen a considerable reduction in the fiscal position over the forward estimates,” Ai Group Chief Executive, Innes Willox, said today.
“The slower growth has both global and domestic drivers and while the budget outlook is not as healthy as was presented at the time of the last Federal Budget, Australia’s public finances remain relatively robust compared with those in other developed countries. They are certainly sufficiently strong to provide a foundation of further fiscal stimulus should the economy fail to pick up steam in the next few months.
“If there is further slowing of domestic activity, measures to stimulate business investment, address the difficulties small businesses are having accessing credit and to avoid a rise in joblessness will be sensible precautions against the risks of confronting the severe costs of a decline activity and a sharp lift in unemployment,” Mr Willox said.