Australia's economic growth forecast slashed amid global tensions
Australia's economic outlook has been downgraded amid concerns about the continuing impact of the Ukraine war.
The OECD group, representing wealthy countries, has cut its forecast of Australian economic growth from 2.5 per cent forecast in June to 2 per cent in 2023.
While Australia will avoid a recession next year, the OECD believes the Reserve Bank will hike up interest rates another 1.25 per cent.
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The OECD group has cut its forecast of Australian economic growth from 2.5 per cent forecast in June to 2 per cent in 2023. A Current Affair
And the June outlook for world growth has been cut from 2.8 per cent to 2.2 per cent in 2023.
The forecast reductions come as the impacts from Russia's invasion of Ukraine spooks governments and economists.
The conflict has triggered a world energy crisis, driven inflation up and forced central banks to hike interest rates faster and farther than expected.
Global tensions will impact Australia's economic growth next year, the OECD warns. AP
The OECD report was released late yesterday after Treasurer Jim Chalmers said the global economy was in a "difficult and dangerous place" as cost-of-living pressures bite.
And while he said next month's budget will offer some measures to ease cost-of-living pressures, the Australian economy was not immune to global events.
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The fallout from the Ukraine war triggered a world energy crisis, driven inflation up and forced reserve banks to hike interest rates. AP
"We've got our own share of challenges here at home: rising inflation, falling real wages, and rising interest rates are a big part of the story."
Among the most pressing challenges for Australians is the imminent rise in fuel costs.
Petrol is expected to jump at least 20 cents a litre when the fuel excise relief is scrapped tomorrow.
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