ID :
51742
Sun, 03/22/2009 - 17:16
Auther :
Shortlink :
http://m.oananews.org//node/51742
The shortlink copeid
Almost impossible to avoid recession: PM
In his strongest language yet, Prime Minister Kevin Rudd has admitted it is "virtually impossible" for the Australian economy to avoid recession.
It's a tacit acknowledgement that government action - including pumping more than
$50 billion directly into the economy since December - won't be enough to stave off
recession.
"It's clear that the impact of a worsening economic global recession will make it
virtually impossible for Australia to sustain a positive economic growth for the
period ahead, with impacts, of course, for budget and employment, which underlines
the importance of global action in response to the global recession," Mr Rudd told
the Nine Network.
Australians, however, will have to wait months to know if the nation is technically
in recession - conventionally considered to be two quarters of negative economic
growth.
March quarter national accounts figures are due for release on June 3.
While Opposition Leader Malcolm Turnbull agrees those figures are likely to show
Australia is in a technical recession, he still believes the government is mistaken
in talking down the economy.
Mr Rudd heads to the United States for his first ever face-to-face meeting with
Barack Obama on Tuesday and Mr Turnbull believes the prime minister can learn a lot
from the American president.
"Mr Rudd almost invariably speaks about the Australian economy in apocalyptic terms
and in terms of disaster and catastrophe," Mr Turnbull told ABC TV.
"You know, we've got to be upbeat here and we have to recognise that we have,
relative to other countries, the strongest or certainly one of the strongest
economies in the world."
On his return from the US and Britain, where he will attend the G20 meeting, Mr Rudd
will head into the final weeks of preparations for the May 12 budget.
Mr Rudd joked Treasurer Wayne Swan's hair would be turning greyer by the minute as
he prepared a tough May budget, against the backdrop of a global economy forecast to
shrink by up to one per cent.
"What you have got on one side of it, is collapsing government revenues coming
straight off the back of the global economic recession, happening with every other
budget around the world," he said.
It's a tacit acknowledgement that government action - including pumping more than
$50 billion directly into the economy since December - won't be enough to stave off
recession.
"It's clear that the impact of a worsening economic global recession will make it
virtually impossible for Australia to sustain a positive economic growth for the
period ahead, with impacts, of course, for budget and employment, which underlines
the importance of global action in response to the global recession," Mr Rudd told
the Nine Network.
Australians, however, will have to wait months to know if the nation is technically
in recession - conventionally considered to be two quarters of negative economic
growth.
March quarter national accounts figures are due for release on June 3.
While Opposition Leader Malcolm Turnbull agrees those figures are likely to show
Australia is in a technical recession, he still believes the government is mistaken
in talking down the economy.
Mr Rudd heads to the United States for his first ever face-to-face meeting with
Barack Obama on Tuesday and Mr Turnbull believes the prime minister can learn a lot
from the American president.
"Mr Rudd almost invariably speaks about the Australian economy in apocalyptic terms
and in terms of disaster and catastrophe," Mr Turnbull told ABC TV.
"You know, we've got to be upbeat here and we have to recognise that we have,
relative to other countries, the strongest or certainly one of the strongest
economies in the world."
On his return from the US and Britain, where he will attend the G20 meeting, Mr Rudd
will head into the final weeks of preparations for the May 12 budget.
Mr Rudd joked Treasurer Wayne Swan's hair would be turning greyer by the minute as
he prepared a tough May budget, against the backdrop of a global economy forecast to
shrink by up to one per cent.
"What you have got on one side of it, is collapsing government revenues coming
straight off the back of the global economic recession, happening with every other
budget around the world," he said.
