Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the member for Flynn for his question. The September quarter national accounts released today show that GDP increased by 0.1 per cent in the September quarter, to be 1.9 per cent higher over the year. This is a positive outcome for Australia, particularly in the context of a global recession. I will put these figures into perspective for a moment. The US, the UK, Germany, Italy, Spain, Japan, Singapore and Hong Kong have all recorded negative growth in the three months to September. Two-thirds of OECD economies are expected to contract in 2009. So, while other countries are contracting, our economy continues to grow. Australian households are pulling back on their spending, in the face of the global financial crisis. Household consumption increased by just 0.1 per cent in the September quarter, as households continue to rebuild their savings. Businesses are continuing to invest in our economy. New business investment rose by a solid 1.8 per cent in the quarter and is 12.5 per cent higher over the year. This continued momentum in major infrastructure projects will help build economic capacity for the future.

Today’s figures show that we cannot resist the pull of international economic forces but that our economy is better placed than other nations to face this global financial crisis. All arms of policy are directed towards buffering our nation and its people from the worst that the world can throw at us. The government has acted decisively to strengthen growth and to limit the impact of the global financial crisis on Australian jobs—firstly, through our $10.4 billion Economic Security Strategy, the bulk of which kicks in from next week. That will certainly provide welcome relief to households and to business. And there is our $15.1 billion COAG package, which will help stimulate growth, create jobs and drive a continued national reform agenda, which is so important for strengthening our economy for the long term. Then there is the $300 million investment in local councils to build local community infrastructure. On top of that, the Reserve Bank has cut the official cash rate by 300 basis points. This means that fiscal policy and monetary policy are working in tandem to strengthen our households, to strengthen our economy and to protect jobs.

I think Australians can take heart from the fact that both the government and the Reserve Bank are taking every responsible step to strengthen the Australian economy, because the Australian economy has slowed considerably since the beginning of the global financial crisis. There is no doubt from these figures that we are not out of the woods yet; this will be a long and protracted global financial crisis. It has some way to run, but we on this side of the House will take every possible action that can be responsibly taken to strengthen our economy, to protect jobs and to protect Australian business.

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