The International Monetary Fund has upgraded its global economic outlook,saying there are signs inflation is declining but warned of ongoing global economic risks.
The International Monetary Fund has used a report on Australia to back higher interest rates and to urge the federal government to embrace more tax reform.
Prime Minister Liz Truss is battling to keep her job after shredding her economic growth plan.
Echoing the words of former prime minister Tony Abbott in 2014,the treasurer said programs full of “rorts and waste” would need to be “scraped off”.
Treasurer Jim Chalmers says the budget could change if the world economic outlook deteriorates further,as warnings grow of a major international downturn.
The heads of the International Monetary Fund and World Bank have warned of a rising risk of a global recession in 2023 while JPMorgan’s CEO has also weighed in.
High and persistent inflation worldwide,and the actions by central banks to rein it in,are depressing economic activity,dampening confidence,and roiling financial markets.
Forecasts for Japan,South Korea,China,India and Thailand have all been downgraded for this year and next.
The International Monetary Fund has urged central banks to keep lifting interest rates while conceding the risk of a global recession next year is increasing.
Sri Lanka’s economic catastrophe is a harbinger of further monetary woes in poorer countries. China,the ATM of the developing world,has to decide if it is part of the solution or part of the problem.
The IMF is warning G20 treasurers to tighten their budgets and central banks to push up interest rates to prevent high inflation from becoming entrenched.