Page 2512 - Week 09 - Tuesday, 6 August 2013
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We have seen very low inflation for the 2012-13 fiscal year. Despite the very strong economic activity and growth in the employment market, inflation was contained to 1.9 per cent. The territory’s solid economic performance has also been endorsed by reputable institutions such as CommSec and Deloitte Access Economics. In its state of the states July report, CommSec rated the ACT’s economic performance as the second strongest in the country, behind only the mining boom state of Western Australia. Deloitte Access Economics in its June quarter 2013 business outlook revised upwards its forecasts for the ACT in 2012-13.
I would like to remind everyone in this place that our solid economic performance is achieved against a very challenging global and domestic economic environment. The global economy remains very weak and fragile, and economic growth in our major trading partners, such as China, is slowing. The latest world economic outlook issued by the IMF downgraded world economic growth forecasts.
The Australian economy is currently experiencing a major structural transition towards, fortunately for the territory, a broader-based economic growth following years of resource investment booms driven largely by demand from China. As such, in the short term, economic growth is expected to slow nationally and the unemployment rate is expected to rise. The commonwealth’s latest economic statement downgraded its budget position and revised down real GDP growth by a quarter of a percentage point for both the 2012-13 and 2013-14 fiscal years.
The ACT economy is not immune from this. It is also not immune from the impact of ongoing commonwealth government spending constraint. In addition, clearly the uncertainty surrounding next month’s election result and the possibility of 20,000 job losses in the ACT are certainly weighing on the minds of Canberra residents and ACT businesses.
But regardless of the cloud that looms with the potential election of an Abbott government, this economy is performing well and our economic outlook remains positive in the longer term. As a responsible government, we will continue to ensure that our economy and community can grow.
MADAM SPEAKER: A supplementary question, Ms Berry.
MS BERRY: Treasurer, what is the current state of the construction industry in the ACT?
MR BARR: We have—
MADAM SPEAKER: Sorry, just hang on a second. Sorry, Mr Barr. Ms Berry, can you read me your first question again please?
MS BERRY: The first question?
MADAM SPEAKER: Yes.
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