Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Hurley for her question. As the Prime Minister outlined yesterday, we are facing almost unprecedented global economic circumstances. The IMF has cut its forecast for global growth three times in the last four months and is now forecasting a deep global recession. The weight of the global recession is bearing down on the Australian economy. As the Prime Minister and Treasurer have outlined, the global recession—and, in particular, the significant fall in China’s economic growth—has resulted in a $115 billion fall in Australian tax receipts to the government. In and of itself, the halving of China’s growth rates—forecast a fall to just 6.7 per cent in calendar year 2009—is expected to result in a $15 billion loss to the Australian economy over the 2009-10 period. The economic outlook for the global economy has deteriorated sharply since MYEFO. Treasury now advises a further $75 billion collapse in revenue, meaning a total of $115 billion collapse in revenue over the forward estimates. This will have a direct impact on our budget and will lead to a temporary budget deficit. The IMF has warned— (Time expired)