World Economy

Risk Building for Australia Economy

Risk Building for Australia EconomyRisk Building for Australia Economy

In terms of economic policy, it’s been a barren four months since Malcolm Turnbull became prime minister and drafted Scott Morrison into the Treasury, NewsNow reported. And it is not as if there is not a lot to be done, including now to prepare the economy for the risks emerging from the market ructions in China. There are also the unresolved issues relating to the budget deficit, sub-trend economic growth, record low wages growth, unemployment, housing affordability, infrastructure and tax, among others. Since becoming treasurer in September, Morrison has overseen more than $32 billion of new borrowing, a clear sign of the policy struggle compounded by the high level of spending and revenue writedowns as commodity prices drift lower. Yet the policy urgency to either raise more revenue or trim government spending is confined to policy green and white papers that will not yield policy progress for many years, if at all. Economic policy has not been a strong point of the current federal government, with precious little legacy and reform after more than two years in office.