With budget speculation heating up ahead of tomorrow’s Federal Budget announcement, hear key elements from Federal Finance Minister Mathias Cormann over breakfast next week.
With Australia set to enter its 27th year of continuous growth and with real growth at 2.4 per cent, Cormann says the preconditions are ripe for stronger economic growth.
Speaking in the lead up to tomorrow’s Federal Budget, Cormann says Australia as a trading nation and WA as a trading state will benefit from the improved global outlook.
Hear Cormann detail more of the economic and fiscal outlook for Australia and WA at the CCI Federal Budget Breakfast on 15 May.
“We have continued to grow at a time when we continue to transition from mining investment and construction driven growth to broader drivers of growth and at a time of lower global economic growth,” he says.
“It is quite remarkable that we are about to enter into our 27th year of continuous growth.
“At 2.4 per cent our real growth is higher than that of any G7 economy, higher than the average of all OECD countries or the Euro area.
“Combined with higher commodity prices, this real growth rate has meant that nominal GDP growth also increased strongly by 6.1 per cent growth over the past year.”
Cormann says the main risks to the economy include global competition and protectionist attitutes.
“Doing what needs to be done to be internationally competitive to succeed in a global economy has underpinned our strong economic performance over an extended period and driven a sustained improvement in our living standards,” he says.
“One of the risks we face is the global trend towards more inward looking, protectionist economic policy approaches, which over time would lead to inferior outcomes both for the global economy as a whole as well as for trading nations like Australia.
“We will need to continue to make the case as effectively as we can that more trade and freer trade flows deliver benefits to people all around the world – to businesses selling their products and services around the world and to consumers who can access the best possible products and services at the best possible prices.”
Cormann says this year’s budget will be about making the right decisions to put Australia on the strongest possible foundation for the future.
“Economically that is in the best position to seize all the opportunities coming our way, in particular in the Asia-Pacific and in the best most resilient position possible to deal with any headwinds.
“We will continue to focus on strengthening growth and job opportunities, to ensure funding for all the important benefits and services provided by the federal government is guaranteed, and to get back into a situation where we live within our means by getting the budget back into surplus as soon as possible.”
Cormann will be joined by CCI Chief Economist Rick Newnham.