The Treasurer is painting a grim picture of the coming months, forecasting spiking inflation, rising unemployment and more interest rate hikes, ahead of a speech to parliament later today.
Shadow Treasurer Angus Taylor said the dire economic conditions were not of the government's making, but it did control how it responded.
"These are tough circumstances. There's a significant global element to it, there's no doubt about that," Mr Taylor told ABC Radio."If we had said during the pandemic, 'We're not going to do anything until the next budget,' you and others would have said, 'Hang on, that's not good enough.'Angus Taylor says the government does not control the global economic circumstances it faces, but it can control its response.
The Shadow Treasurer urged the federal government to cut spending in light of the weakened growth figures."They are committed to $20 billion of transmission line investments, for instance … It is not recommended by the market operator," Mr Taylor said. "This is an illustration of the sort of spending that is not necessary in an environment where you are going to create inflationary fires."
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