Australian Prime Minister Scott Morrison said that in the next five years, the economy must grow at an annual rate of nearly 4% to recover from the recession caused by the new crown epidemic. He also warned that employment support measures must make way for an investment agenda that promotes growth.
The Prime Minister warned that the government must limit spending to help solve his record fiscal deficits this year and next. He also gave the strongest signal to date that the JobKeeper and JobSeeker plans will have to expire when the legal period expires at the end of September. He said: “We can’t tell the Australian people that the government or anyone else is ultimately able to guarantee that every job can be saved and every business can be saved. This is unrealistic.”
Morrison pointed out that the average growth rate of the Australian economy is 2.75%, and his goal is to achieve an annual growth rate of 3.75% by 2025. The OECD predicts that the economy will shrink by 5% this year. To achieve growth, Morrison intends to rely on the growth promotion agenda to stimulate business investment and employment. This will include labor relations reforms, tax incentives and deregulation, as well as Morrison’s announcement on Monday to shorten the approval time for large infrastructure projects and reduce bureaucratic formalities through the national cabinet.
