RBA downgrade will hit economy: Swan
On Friday 4 November 2011, 13:03 EST
A forecast downturn in economic growth will affect the federal budget, Acting Prime Minister and Treasurer Wayne Swan says.The Reserve Bank of Australia (RBA) on Friday released its Statement on Monetary Policy, downgrading the average economic growth for 2011/12 from 4 per cent to 3.25 per cent.
"What it means is that we will have less revenue than we expected when we did our budget forecasts back in May," Mr Swan told reporters in Sydney on Friday.
"But the government is determined to bring the budget back to surplus in 2012/13 as planned."
Mr Swan said Australia was not immune to the economic instability in the US and the sovereign debt crisis in Europe.
He said the unstable outlook would affect the hiring intentions of employers and Australia's high dollar continues to impact trade/exposed sectors.
"It certainly has an impact on confidence," Mr Swan said.
"So we can expect to see an impact on budget revenues."
The lower figure of 3.25 per cent was less than what the government expected six months ago, Mr Swan said, but is still much higher than nearly every other developed economy.
The government expects to update its budget forecast by the end of the year.
75 comments
-
0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentbrian Report AbusePlanning excuses,very clever.
Reply - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this commentEx Liberal Voter Report Abuse
How lucky are we living in the best country in the world,with the best economy in the world,if only the rest of the world had of followed Labors management they would be doing as fantastic as us..Thank you Julia,Swannie and team Labor,we owe you a mountain of gratitude,and thank you god for not listening to Father Fail Tiny Aborts prayers and not helping him win the election,otherwise we would be all living in the gutter by now,a BIG THANK YOU.
Reply - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentDarren Report Abuse
What a load of propaganda. The WORLD economy is on the brink of total collapse because criminals run the system and own politics. Most countries are bankrupt and only have "assets" based on fake leveraged "credit default" swaps or "virtual" money with NO backing in anything except thin air. Swan, an employee of Goldmann Sachs will have nowhere to run once the entire PONZI scheme falls around his retarded ears.
Replies (1)
Banksters and the political puppets they control will be first against the wall when the revolution comes, and it will be coming a lot sooner than anyone thinks. The derivative bubble will burst and we will see the few private hands billions of our taxes have gone to. Those in debt will have NOTHING except misery when the banks collapse and creditors demand YOUR HOUSE as a bank asset.
It's game over. - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentAreel Report Abuse
Good morning my good friends. My infant son took it upon himself to wake up the family this morning at 4.30am. I am very tired but a full days work awaits. I will look forward to your company a little later this evening. Have a happy day everyone. Regards Areel
Replies (2) - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentA Yahoo!7 User Report Abuse
Europe now looking for a bailout from China – just as the United States is drowning in debt to China.
Replies (4)
Coincidence? Not a chance. these are only my opinions, PLEASE feel free to do your own research and get up to speed! - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentDavid Report Abuse
Swan wants to take credit when things are right but when they are not some other country is to blame for it. What a plonker. Get rid of him and that stupid woody woodpecker prime minister with the big duck bottom...
Reply - 0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentA Yahoo!7 User Report Abuse
In this cold and calculated way, the original crisis for the banks in 2008 has become a crisis for virtually everyone – except those who caused it – and vast tracts of public wealth have been transferred to those who caused it. But this is not the end of this process. Oh no. The idea is to bring every country to its financial knees so they can be absorbed into a world government and central bank and the plan is to keep on increasing the scale of their debts until there is a collective ‘bang’ that would heard on Mars.
Replies (7)
We had all that ‘debt ceiling’ theatrics in the United States a few months ago with ‘crisis talks’ to increase the US ‘debt ceiling’ beyond what the law allowed. That law was always going to be changed to ensure the debt was increased, as I said at the time. It was all a stage show. It was like ‘phew, crisis over’, when the inevitable agreement was secured; but it was not crisis over at all. It was crisis worse. How can a debt crisis be over when the ‘solution’ is to raise the ceiling and incur massively more debt before the next crisis occurs at a far higher level of indebtedness?
It is crazy, or crazy if you think governments are supposed to be serving the interests of the people. It is genius if you know that the idea is to destroy America so it can be crushed by the world government jackboot. The same is happening in Europe where this week the Sarkozy-Merkel alliance won agreement for a new ‘bailout fund’ of a trillion euros. Where does that come from? More debt. This is the game – to increase debt to the point where the whole system comes down and a new one – the Cabal’s one – steps forward to replace it. This would be based on a world government, central bank and army.
Current events financially, politically and militarily are one giant collective Problem-Reaction-Solution – the more problems you create, the more solutions (your solutions) you can sell to a bewildered and ever more anxious and fearful public. And you know it, too, don't you, Obama, Sarkozy, Merkel, Cameron, Harper, Gillard and all the other souls for sale? - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this commentJames Report Abuse
Ummmm, your concerned about economic growth of 3.25%...? Compare that to the UK's 0.5% and get some perspective! Australia is sitting pretty. As much as I cant stand the Aussie Labour government, theres really not much to be concerned about aside from the High value of the Aussie Dollar.
Reply - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentJohn Report Abuse
The Government can interfere in the economy as much as it likes, but people will still make economic decisions on an individual basis, seeking to evade the thefts of the politicians. Eventually, the General Market will destroy the Government, if it doesn't learn to back off. It may take decades, but Democracies alawys go broke in the end. A system where everyone robs everyone else via the Ballot Box is a physical impossibility, for the same reason you can't have a perpetual motion machine...
Reply - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentA Yahoo!7 User Report Abuse
Bubble bursting
Reply
No comments:
Post a Comment