The Oceania Times

Top Menu

  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

Main Menu

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions

logo

The Oceania Times

  • Australian Economy
  • Brokers
  • Commodities
  • Currencies
  • Financial Market
  • Gold and Precious Metals
  • Investment
  • Stock Shares
  • Seiko Epson : Notice of Disposal of Treasury Shares as Restricted Stock Compensation

  • Microsoft Becomes Allied Investment Advisors’ Second Biggest Bet

  • Australia hit by new Covid wave; over 30,000 infections reported on Tuesday

  • Yuanta Financial : YFH announces the board resolution of Yuanta International Insurance Brokers on the record date for 2021 dividend distribution

  • Commodity stocks lead European shares higher on China COVID relief

Australian Economy
Home›Australian Economy›Australian economy survived Covid better than most but recovery could slow, OECD says | Australian economy

Australian economy survived Covid better than most but recovery could slow, OECD says | Australian economy

By Megan
September 14, 2021
8
0
Share:

Australia has weathered the economic downturn from Covid-19 better than most developed countries but could face a slower recovery when community transmission is higher, the OECD has warned.

That is the conclusion of the Organisation for Economic Co-operation and Development’s 2021 economic survey of Australia, the first since the former finance minister Mathias Cormann took the helm in June.

The OECD report also warned Australia remained vulnerable to shocks including escalation of its trade disputes with China, decline in fossil fuel demand, and carbon tariffs that might be imposed by trading partners.

It called for Australia to consider less conventional monetary policy, raising unemployment benefits and greater cuts to greenhouse gas emissions as means to turbocharge recovery.

The treasurer, Josh Frydenberg, has seized on the report’s findings that Australia had a “well-coordinated” response to the pandemic including “macroeconomic policy support [that] was delivered swiftly and with appropriate force at the onset”.

But the shadow treasurer, Jim Chalmers, said the report was “yet another credible contribution pointing out that Australia’s economic weaknesses predated the pandemic, and that the recovery is hostage to the government’s failures on vaccines”.

The OECD noted Australia’s vaccine rollout “started slowly but has picked up pace in recent months” and that parts of the country remain in lockdown despite a shift from a virus elimination to suppression approach.

“OECD projections envisage annual output growth of 4% in 2021 and 3.3% in 2022,” it said, despite a certain contraction in the third quarter of 2021.

It said risks and uncertainties “remain large”, with the potential for rapid recovery due to household savings being unleashed but the downside of Covid outbreaks in currently virus-free states.

The OECD noted that Australia had shown “signs of structural headwinds when the pandemic hit” including that “productivity and wages growth had slowed notably”.

“Over the longer-term, fiscal spending pressures will grow,” it said.

“Under current policy settings, ageing related costs will cause public debt to rise to 2060.

“In addition, further investment in the social safety net is needed, not least to complement reforms that promote business and labour market dynamism. For example, the unemployment benefit rate should be raised further.”

Sign up to receive the top stories from Guardian Australia every morning

The OECD noted the Morrison government had raised jobseeker by $50 a fortnight, but said at 29% of the average wage the benefit for a single person “is still very low by OECD standards”. The government should consider indexing jobseeker to wage inflation, it said.

The OECD said Australia showed a “decline in environmental innovation over the past decade” and called for “stronger incentives for innovation and adoption of new low emission technologies”.

It said a national carbon price “would be the most efficient means of achieving this” but due to “political considerations” Australia may need to scale up other market-based instruments, including the safeguard mechanism, a carbon offset system for large emitters.

“This should be accompanied by policies that support the transition of workers out of fossil fuel generating industries.”

The OECD report noted that imposition of carbon border adjustments – which are being considered by the European Union – could place “a carbon price on imports from less climate-ambitious countries” and have “significant impacts” on Australia’s trade-exposed sectors.

It listed a decline in fossil fuel demand as a shock that would have “a large impact on the mining sector and related industries” particularly thermal coal exports to China, Japan and South Korea, which are all aiming for net zero emissions.

Quick Guide

How to get the latest news from Guardian Australia

Show

Photograph: Tim Robberts/Stone RF

Thank you for your feedback.

Cormann was elected head of the OECD in March despite grave concerns voiced by environmental groups over his record on climate change.

In campaigning for the job, Cormann talked up the importance of a “collective green recovery” despite being part of the Abbott government that abolished Australia’s carbon price – incorrectly characterised as a tax – in 2014.

Scott Morrison wants to achieve net zero emissions by 2050 or sooner if possible, but is yet to persuade the junior Coalition partner, the Nationals, to make this government policy and allow him to take it to Cop26 climate talks in Glasgow in November.

Chalmers said Australia’s economy would “be much stronger if it wasn’t shedding billions of dollars a week as a consequence of the Morrison government’s inability to get vaccines and quarantine right”. “That’s the price Australians are paying for Scott Morrison’s mistakes.”

Frydenberg noted the OECD survey found a “substantial quickening in the pace of the vaccine rollout”.

“With more than 43% of Australians fully vaccinated, progress towards our nationally agreed targets of 70 to 80% is accelerating,” Frydenberg said in a statement.

As the survey notes, once we reach these targets, “the reopening of international borders will support the economic recovery through enabling foreign student arrivals, bilateral tourism and population growth stemming from net immigration”.

Source link

Previous Article

Australian economy likely already slowing in Q2 ...

Next Article

Is Disaster Looming for Australia’s Economy?

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Megan

Related articles More from author

  • Australian Economy

    Inflation, cost-of-living, supply chains, declining wages, climate impacts and inequality are leading us towards global unrest

    June 25, 2022
    By Megan
  • Australian Economy

    China-Australia at ‘new juncture’ with election of Albanese: Beijing envoy

    June 13, 2022
    By Megan
  • Australian Economy

    Australia’s emissions climbed in Coalition’s final year as transport and fossil fuels wiped out gains during Covid | Greenhouse gas ...

    June 27, 2022
    By Megan
  • Australian Economy

    Two in five Australian businesses expect to hike costs as inflation soars

    May 27, 2022
    By Megan
  • Australian Economy

    Analysis: As U.S. economy’s exceptionalism fades, so does the dollar

    May 25, 2022
    By Megan
  • Australian Economy

    How is Ukraine crisis impacting Australia’s LNG plans?

    June 1, 2022
    By Megan

Leave a reply Cancel reply

You may interested

  • Brokers

    VanGuard-Trading Review – A Online Investment Broker Worth Getting Excited About

  • Brokers

    From financial services advisor to mortgage broker

  • Stock Shares

    Sensex today: Stock Market LIVE Updates: Sensex reverses losses, turns flat; Nifty above 16,350; Rupee plumbs new lows

  • LATEST REVIEWS

  • TOP REVIEWS

Timeline

  • June 28, 2022

    Seiko Epson : Notice of Disposal of Treasury Shares as Restricted Stock Compensation

  • June 28, 2022

    Microsoft Becomes Allied Investment Advisors’ Second Biggest Bet

  • June 28, 2022

    Australia hit by new Covid wave; over 30,000 infections reported on Tuesday

  • June 28, 2022

    Yuanta Financial : YFH announces the board resolution of Yuanta International Insurance Brokers on the record date for 2021 dividend distribution

  • June 28, 2022

    Commodity stocks lead European shares higher on China COVID relief

Best Reviews

Latest News

Stock Shares

Seiko Epson : Notice of Disposal of Treasury Shares as Restricted Stock Compensation

News Release & Notice of Disposal of Treasury Shares as Restricted Stock Compensation – TOKYO, Japan, June 28, 2022 – The Board of Directors of Seiko Epson Corporation (TSE: 6724, ...
  • Microsoft Becomes Allied Investment Advisors’ Second Biggest Bet

    By Megan
    June 28, 2022
  • Australia hit by new Covid wave; over 30,000 infections reported on Tuesday

    By Megan
    June 28, 2022
  • Yuanta Financial : YFH announces the board resolution of Yuanta International Insurance Brokers on the record date for 2021 dividend distribution

    By Megan
    June 28, 2022
  • Commodity stocks lead European shares higher on China COVID relief

    By Megan
    June 28, 2022
  • Recent

  • Popular

  • Comments

  • Seiko Epson : Notice of Disposal of Treasury Shares as Restricted Stock Compensation

    By Megan
    June 28, 2022
  • Microsoft Becomes Allied Investment Advisors’ Second Biggest Bet

    By Megan
    June 28, 2022
  • Australia hit by new Covid wave; over 30,000 infections reported on Tuesday

    By Megan
    June 28, 2022
  • Yuanta Financial : YFH announces the board resolution of Yuanta International Insurance Brokers on the ...

    By Megan
    June 28, 2022
  • Seiko Epson : Notice of Disposal of Treasury Shares as Restricted Stock Compensation

    By Megan
    June 28, 2022
  • Australian economy survived Covid better than most but recovery could slow, OECD says | Australian ...

    By Megan
    September 14, 2021
  • The Best Online Brokers, According to 5 Financial Experts

    By Megan
    September 14, 2021
  • Is Disaster Looming for Australia’s Economy?

    By Megan
    September 29, 2021

Trending News

  • Stock Shares

    Seiko Epson : Notice of Disposal of Treasury Shares as Restricted Stock Compensation

    News Release & Notice of Disposal of Treasury Shares as Restricted Stock Compensation – TOKYO, Japan, June 28, 2022 – The Board of Directors of Seiko Epson Corporation (TSE: 6724, ...
  • Investment

    Microsoft Becomes Allied Investment Advisors’ Second Biggest Bet

    In a recent filing with the Securities and Exchange Commission (SEC), Montana-based investment management services provider Allied Investment Advisors stated that it increased its stake in Microsoft Corp. (NASDAQ: MSFT) ...
  • Australian Economy

    Australia hit by new Covid wave; over 30,000 infections reported on Tuesday

    Health authorities in Australia’s capital Canberra have warned of a new wave of coronavirus infections. Australian Capital Territory (ACT) Health Minister Rachel Stephen-Smith revealed ...
  • Brokers

    Yuanta Financial : YFH announces the board resolution of Yuanta International Insurance Brokers on the ...

    Close Provided by: Yuanta Financial Holding Co., Ltd SEQ_NO 5 Date of announcement 2022/06/28 Time of announcement 15:20:39 Subject YFH announces the ...
  • Commodities

    Commodity stocks lead European shares higher on China COVID relief

    European shares rose on Tuesday, led by gains in commodity-linked stocks and automakers after China relaxed its COVID-19 quarantine mandate, while investors awaited ECB President Christine Lagarde’s speech later in ...
  • About us
  • Contact Us
  • Cookie Policy
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© Copyright The Oceania Times. All rights reserved.

SUBSCRIBE TO OUR NEWSLETTER

Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.