NEWS
Aussie Finance Minister Stays Positive About Bounce Back of Economy
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Australia’s Finance minister appears to be positive for the economy bouncing back after the pandemic outbreak is over. We’re quite confident on the other side, once we’re on the other side of this coronavirus-induced crisis, that we’ll be able to bounce back strongly,” Mathias Cormann told CNBC on Thursday.
His statement was followed by the S&P Global Rating report of Australia’s credit rating and stocks being revised from stable to negative because of the coronavirus. Where rating suggests that the situation can be worse for the coming two years, Cormann stays positive claiming that the government and Reserve Bank of Australia are taking every possible measure to deal with the crisis, Covid-19.
Measures representing 16.4% of Australia’s GDP have been put in place already and Cormann adds for such major measures this is quite it, although adjustment with the process can be made.
Monetary or Fiscal policy are both working in the same direction to support the economy, business, and jobs as per him. A package of 320 billion Australian dollars has been pledged in attempts to combat the pandemic. Millions of wages are being subsidized under this by the government.
He states that nearly 6 million workers are being provided support via the JobKeeper program. However, Cormann also adds that the country is unlikely to introduce any other fiscal stimulus as the economy of the country may cripple drastically.
Regarding visa-holders, he states that although the country is providing assistance, they are likely to spend the savings and might return home if they are unable to do so or have access to superannuation which is the money an employer sets aside to be given at the time of retirement.
As for Australia’s debt position he used the term ‘very comfortable’ on an international basis. Where the situation is likely to last for six months, he stays positive that the huge expenditures are only temporary. Cormann hopes that the situation gets better sooner than that and claims that sections of the economy would’ve never closed if it wasn’t for the purposes of saving lives.
