Author Topic: Building industry decline blamed on the rain | Debt to hit $350b  (Read 1590 times)

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Building industry decline blamed on the rain | Debt to hit $350b
« on: December 07, 2016, 11:43:04 PM »

Australia's growth rate shock sparks recession talk

7 Dec 2016

 IF you haven't had a decent payrise this year, you shouldn't be surprised.

The Australian economy is hardly booming.

In fact it shrank 0.5% in the September quarter, well below forecasts, according to new figures released on Wednesday.

It's the steepest decline since the global financial crisis of 2008.

The annual growth rate came in at a paltry 1.8%.

The figures will put huge pressure on the Turnbull government to deliver some good economic news.

Public capital expenditure, such as infrastructure investment, knocked 0.5 percentage points off growth in the September quarter after a strong June quarter.

The Australian Bureau of Statistics noted that higher-than-usual rainfall contributed to much of the decline in building activity.

Australia's debt could hit $350 billion next year

THE Federal Government's debt could hit close to $350 billion next year unless Malcolm Turnbull is able to get budget savings through parliament.

The ABC says documents it has obtained show the deficit this year will be more than $37 billion.

"The 2016 Pre-Election Economic and Fiscal Outlook (PEFO) reports a significant fiscal challenge for the Government," the document, released to the ABC under Freedom of Information laws, said.

The government has been warned of key risks to getting the nation's books back in order.

They include the cost of the National Disability Insurance Scheme, new drugs being listed on the Pharmaceutical Benefits Scheme; and payments to the states after natural disasters.

"Commonwealth Government debt levels are projected to reach recent historical highs, both on a gross and net basis," the PEFO said, with Commonwealth debt expected to hit $347.1 billion next financial year.

"Should Australia experience a significant negative economic shock, the fiscal position would be expected to deteriorate rapidly from current projections."

News of the warning, which came with suggestions of higher taxes, comes after Labor yesterday agreed to support the Government's savings bill, achieving $6.3 billion in savings.

But Treasurer Scott Morrison warned Australia's AAA credit rating - which affects the cost of public and private debt - is still not secure, the ABC reported.

Scott Morrison: