OECD upgrades Australia’s economic growth outlook 3 December

first_imgOECD upgrades Australia’s economic growth outlook 3 December In its latest Economic Outlook Report, the OECD has upgraded Australia’s economic growth outlook for 2020 while noting that “the COVID-19 pandemic continues to exert a substantial toll on economies and societies”.According to the OECD, global GDP will contract by 4.2 per cent in 2020, before picking up by 4 ¼ per cent in 2021. The OECD says there is “now hope for a brighter future” with vaccines in sight however “the recovery will be uneven across countries, potentially leading to lasting changes in the world economy”.The OECD has upgraded its outlook for the Australian economy by 0.3 percentage points following the Federal Budget released on 6 October. The OECD now expects Australia’s economy to contract by 3.8 per cent in 2020 (previously 4.1 per cent). This compares favourably to an average fall of 5.5 per cent across all advanced economies.These figures are despite Victoria’s “strict state-wide” lockdown measures which the OECD recognised led to an “interstate divergence in consumer sentiment and labour market outcomes”.The OECD also emphasised the Morrison Government’s economic response to the COVID-19 pandemic, pointing to JobKeeper as having “covered nearly one million employers and one-third of all employment, containing the rise in the measured unemployment rate so far”.This finding was recently confirmed by research from the Reserve Bank of Australia (RBA) which found that the temporary payment helped to reduce “total employment losses by at least 700,000”.In addition to the effectiveness of JobKeeper, the OECD notes the importance of the Government’s Economic Recovery Plan, in particular personal income tax cuts, the JobMaker Hiring Credit and planned insolvency reforms which it describes as “key”.These changes are the most significant to Australia’s insolvency framework in 30 years, drawing on features of the Chapter 11 bankruptcy model in the United States, ultimately keeping businesses in business and Australians in jobs.Our Economic Recovery Plan outlined in the 2020-21 Budget is working to help to create more jobs, boost our economic recovery and secure Australia’s future. /Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here. Why?Well, unlike many news organisations, we have no sponsors, no corporate or ideological interests. We don’t put up a paywall – we believe in free access to information of public interest. Media ownership in Australia is one of the most concentrated in the world (Learn more). Since the trend of consolidation is and has historically been upward, fewer and fewer individuals or organizations control increasing shares of the mass media in our country. According to independent assessment, about 98% of the media sector is held by three conglomerates. This tendency is not only totally unacceptable, but also to a degree frightening). Learn more hereWe endeavour to provide the community with real-time access to true unfiltered news firsthand from primary sources. It is a bumpy road with all sorties of difficulties. We can only achieve this goal together. Our website is open to any citizen journalists and organizations who want to contribute, publish high-quality insights or send media releases to improve public access to impartial information. You and we have the right to know, learn, read, hear what and how we deem appropriate.Your support is greatly appreciated. All donations are kept completely private and confidential.Thank you in advance!Tags:AusPol, Australia, Australian, Australian Treasury, business, covid-19, employment, Federal, GDP, Government, Morrison, Morrison Government, OECD, outcomes, research, Reserve Bank of Australia, United States, Victorialast_img

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