In its latest economic update, the OECD has called on the Morrison Government to support the floundering economy that it expects to grow well below the Government’s own forecasts.
These numbers show Scott Morrison and Josh Frydenberg have dithered and denied while the economy has deteriorated on their watch.
The OECD expects the economy to grow slower and unemployment to remain higher than Budget forecasts over the next two years.
The OECD’s Economic Outlook forecasts weak, below-trend growth of only 1.7 per cent this year and 2.3 per cent next year, and unemployment of 5.3 per cent in 2020.
This damning report follows recent downgrades to growth by the RBA and IMF, further highlighting that the Government’s forecasts have passed their used-by-date.
The Outlook said that the Government “may need to play a more active role in strengthening economic growth,” a move it described as “warranted given that the economy is growing well below its potential.”
The OECD noted that “private consumption spending has been sluggish, weighed down by slow wage growth”.
Weak growth like this is the inevitable consequence of a Liberal Government with a political strategy but not an economic plan.
Right when the economy needs responsible, proportionate and measured stimulus, Scott Morrison and Josh Frydenberg have a political strategy but not an economic plan.
It is time Josh Frydenberg and Scott Morrison brought forward a budget update to fix their forecasts and properly outline an economic plan that supports the floundering economy and better safeguards it from global risks.
FRIDAY, 22 NOVEMBER 2019