Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Cormann. If the government is doing such a good job managing the economy, why has the IMF slashed Australia's economic growth forecast to be only 1.7 per cent this year?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

My answer to this question is that everybody around the world, except perhaps the Australian Labor Party, knows that we are facing significant global economic headwinds and that the International Monetary Fund has again downgraded the global economic growth outlook down to three per cent, the lowest since 2008-09. Australia is a globally focused and globally exposed open trading economy. When the global economy weakens, it has a flow-on impact on the Australian economy. There's something else that everybody, except perhaps the Australian Labor Party, knows—that is, that earlier this year we had a significant flood and we continue to have a severe drought in large parts of regional Australia, which is impacting on our domestic economic growth outlook.

But here's another thing. We have a plan to deal with the challenges we're facing. We have a plan to build a stronger, more resilient economy on the back of lower taxes, more infrastructure, lower energy prices and better access to markets around the world for our exporting businesses. At the last election the Australian people had the opportunity to choose between two alternative plans. They were presented with a high-spending, high-taxing plan, which Australians understood would have weakened our economy and led to higher unemployment and lower wages growth, or our plan for a stronger economy, more jobs and better opportunities for Australians to get ahead. Of course we are facing global economic headwinds. Other economies around the world have actually shrunk in the last quarter, in the June quarter: Germany, the United Kingdom, Singapore—and, indeed, if you look at the growth outlook for the G7 economies in the same report, Australia's economic growth outlook is higher than any of those G7 economies other than the United States. (Time expired)

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

Senator Gallagher, a supplementary question?

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

If the government has the right policy settings then why are Australia's economic downgrades from the IMF four times worse than for advanced economies as a whole?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

The Australian economy is into its 29th year of continuous growth. Let me tell you something: Senator Chandler has never experienced anything other than a growing Australian economy.

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

We have a point of order.

Don Farrell (SA, Australian Labor Party, Shadow Special Minister of State) Share this | Link to this | Hansard source

The standing orders require that the leader address the Chair. I've noticed that he has his back turned away from you on every occasion. Could you please direct him to address the Chair, in accordance with the standing orders.

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

I'm sure Minister Cormann is well aware of the standing orders.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

Of course, in addressing you, Madam Deputy President, let me continue to make this point: Senator Chandler has never experienced anything other than a growing Australian economy. What she has never experienced is a Labor surplus. Our government stands by the plan for a stronger economy, which, of course, includes making sure that the Australian government lives within its means, because that is an important part of making sure that our economy is as resilient as possible into the future.

Sue Lines (WA, Deputy-President) Share this | Link to this | Hansard source

Senator Gallagher, a final supplementary question?

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Minister, why do you pretend the economy is strong when the IMF's World economic outlook predicts Australia's growth for this year will be slower than the US, Spain and New Zealand?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

The Australian economy is into its 29th year of continuous growth. We are one of only 10 AAA-rated economies. Of course we are exposed to things like global trade tensions—that is something that everybody understands—and we are implementing a plan to deal with the challenges that we're facing. But let me also make the point again on wages growth. Labor haven't been asking questions on wages growth today. I know why. Because yesterday they finally realised that wages growth in Australia in the last financial year was the highest it's been since 2013-14. Real wages growth is higher than it was when Labor lost government, and indeed it's higher than the long-term 20-year average of 0.6 per cent. If the Labor Party were really interested, they would back our plan for a stronger economy and more jobs. (Time expired)