Australia’s economic situation will certainly have the ability to hold up against worldwide monetary shocks coming from a 2nd Donald Trump presidency, the treasurer claims.
In a speech to the Australian Institute of International Affairs on Monday, Jim Chalmers will certainly claim Australia is most likely to get on far better than various other countries in managing possible financial stress.
Mr Trump has actually suggested considerable tolls on imports right into the United States as component of his 2nd term schedule.
But Dr Chalmers claims Australia is gotten ready for such a circumstance ought to the actions be carried out.
“We should expect a small reduction in our output and additional price pressures, particularly in the short term,” Dr Chalmers will certainly claim.
“But specific features of the economy, like a flexible exchange rate and independent central bank, would help mitigate against some of this.”
The treasurer will certainly claim the influence around the world to the suggested tolls from the United States would certainly be far more considerable, according to Treasury modelling performed prior to the United States political election.
“The timing of this, and the responses and ramifications that might follow – what economists call second-round effects – are difficult to predict,” he will certainly claim.
“But we wouldn’t be immune from escalating trade tensions that might ensue. This is consistent with the views expressed last week by the prime minister.”
Australia had the ability to bargain considerable exceptions to tolls enforced by the United States throughout the initial Trump term.
The treasurer thinks Australia’s polite initiatives had an essential bearing on financial plan.
“Economic policy and foreign policy have always been interlinked but now they’re almost indistinguishable,” he will certainly claim.
“In this uncertain world characterised by economic vulnerability and volatility, our foreign policy team is a team effort which brings economic benefits.”
The speech comes in advance of Prime Minister Anthony Albanese taking a trip to South America later on in the week for talks with globe leaders at the APEC and G20 top.
The tops will certainly be the last time Mr Albanese will certainly be in person with outward bound United States President Joe Biden.
Dr Chalmers will certainly claim that in spite of the result of the United States political election, the partnership with America will certainly stay solid.
“Our relationship with America under presidents and prime ministers from all sides is strong and enduring.
“Of program we anticipate the inbound United States management to bring a various collection of plans, and we are certain in our capacity to browse that modification, as companions. Nobody need to undervalue our capacity to make it function. We are well positioned and prepared.”
