Jim Chalmers, the federal treasurer, has warned that Australia’s economy is facing a trio of challenges – high inflation, low growth and rising unemployment – as his officials begin to downgrade forecasts ahead of the December mid‑year budget update.
In a speech last week, Chalmers offered a modest reassurance that the economy would be “a bit better” in a year’s time. However, Friday morning he revealed that the Treasury’s latest projections now show slower growth and higher unemployment than previously expected.
The new forecasts add to concerns about the country’s economic outlook, with officials signalling that inflation remains elevated while job creation is faltering.
These revisions come as the Treasury prepares the mid‑year budget, a key document that will outline government plans for the remainder of the year.
Chalmers did not provide further detail on the reasons behind the downgrades, but the announcement underscores the difficulty of balancing inflation control with employment growth.
<small>Source: The Guardian — read the original story there.</small>
