Not so good news for PNG from Down Under


World Finance & Economy
Australian Economy (Getty Images/bubaone)
While 2017 may have been a tumultous time in the political world, it failed to impede the Australian economy, which is looking better than the same time last year. Annual Gross Domestic Product is higher, the unemployment rate has fallen, and official interest rates have remained the same. Image for illustration only. For image text, go to https://www.sbs.com.au/yourlanguage/node/1318472?language=so

Not so good news for PNG from Down Under

PORT MORESBY: Australia’s economy is reported to be slowing down and that’s depressing news coming from Papua New Guinea’s neighbour in the Pacific.

Economists polled by Reuters forecast Australia's A$1.9 trillion (US$1.4 trillion) annual gross domestic product (GDP) would expand 2.2 percent in 2019, down from a prediction of 2.7 percent in the previous poll.

The slowdown is likely to also have an effect on PNG’s economy this year.

Read on for the details:

Australia economy to slow on wilting home prices, spending

ECONOMY
Friday, 12 Apr 2019
8:33 AM MYT
The slowdown has fuelled speculation the Reserve Bank of Australia (RBA) would have to cut interest rates from already record lows to shore up activity.
SYDNEY: Analysts have again cut forecasts for Australian economic growth following a deeply disappointing end to last year when weakness in consumption and slumping house prices overwhelmed strength in the labour market.

Economists polled by Reuters forecast Australia's A$1.9 trillion ($1.4 trillion) annual gross domestic product (GDP) would expand 2.2 percent in 2019, down from a prediction of 2.7 percent in the previous poll.

Growth was seen picking up to 2.6 percent in 2020, though that would still be short of the 2.75 percent rate considered trend.

"Housing and the consumer remain at the epicentre of the domestic slowdown. Developments on both fronts continue to point to the 2018 drag carrying into 2019," said Westpac senior economist Matthew Hassan.

"We expect growth to remain at a subdued 2.2 percent pace throughout 2019 and 2020."

The slowdown has fuelled speculation the Reserve Bank of Australia (RBA) would have to cut interest rates from already record lows to shore up activity.

Just this week, RBA Deputy Governor Guy Debelle acknowledged economic output had disappointed but argued the continued strength of employment might presage an upturn.

Australia's conservative government has also chipped in some fiscal stimulus for the second half of this year with a budget full of tax breaks and infrastructure spending.

The government faces an election on May 18 and is trailing badly in opinion polls.

"A disposable income boost would alleviate some of the strains on household budgets and reduce the downside risks to consumer spending," said CBA chief economist Michael Blythe.

He estimated planned tax cuts would have the same economic impact as two quarter-point cuts in interest rates.

"The lift in transport infrastructure spending will help support demand in the short term, and lift incomes and productivity over the longer haul," he added.

There is plenty of scope for stimulus as inflation remains well-contained, having run below the RBA's 2-3 percent target band for two whole years.

The latest poll showed analysts expected inflation of just 1.9 percent for this year, rising marginally to 2.2 percent in 2020. - Reuters/The Star

Comments

Post a Comment

Popular posts from this blog

Sugu Valley tribal war death toll rises to at least 30

Image
News that matters in Papua New Guinea Armed tribal warriors on the move in Sugu Valley. Sugu Valley tribal war death toll rises to at least 30 PORT MORESBY: At least six tribes have been fighting in Sugu Valley (Kagua-Erave, Southern Highlands) since Feb 10, 2019, without any signs of an end and peace. In fact, the death toll has risen to at least 30, up from 11 on May 23, 2019, and the opening of a new battlefront in Sumbura near Poroma with multiple deaths reported in 24 wards. Armed tribal warriors on the march into the forests and jungles. PNG Cyber Monitor had on a May 25, 2019, posting ( https://pngcybermonitor.blogspot.com/2019/05/real-life-rifles-bows-and-arrows-bloody.html Real life rifles, bows and arrows bloody fights in PNG ) highlighted the bloody battle waged by tribal warriors armed with rifles, bows and arrows and knives. PNG Cyber Monitor is again highlighting the plight of the villagers who have been living in fear as reported by The Nationa
Read more

Growing unemployment rate in Papua New Guinea

Image
News that matter in Papua New Guinea Growing unemployment rate in Papua New Guinea (Employment stagnant since 2014) PORT MORESBY: Employment in Papua New Guinea (PNG) has remained stagnant since 2014 with millions of unemployed looking for jobs. The formal job market currently can only accommodate between 400,000 and 500,000, Institute of National Affairs executive director Paul Barker says. “As more young people enter the job market this year after graduating from tertiary institutions and schools, the chances of securing formal employment is slim. “Employment had remained stagnant despite the increase in potential workers coming out of educations institutions,” he added. Read on for more details as published by The National : Hard to get jobs January 27, 2022 The National Main Stories By DALE LUMA MILLIONS of eligible workers around the country are looking for jobs in the formal sector, which currently can
Read more

Sorcery shame for Papua New Guinea in X’mas

Image
News that matter in Papua New Guinea Sorcery tortures and violence are still being practised in Papua New Guinea in this 21st Century digital era. Sorcery shame for Papua New Guinea in X’mas PORT MORESBY: It was international shame for Papua New Guinea (PNG) this Christmas when sorcery reared its ugly head. Six women were stripped, bound to poles and burnt with hot knives as they screamed in pain, watched by an unsympathetic crowd. In a video that has gone viral in the internet, the women were accused of practising sorcery in Southern’s Enga. Police Comm David Manning described the sorcery torture as vile, inhumane, uncivilised, void of any human decency. “Papua New Guinea cannot progress without letting go of these horrific traditional beliefs. We have launched an urgent probe into the incident in Aiya’s Pawayamo village in Kagua-Erave.” The news break was published by The National : Horror torture of women Decem
Read more