Australia’s economy vulnerable to global ‘volatility’, Chalmers warns

The growing conflict in the Middle East is casting a “dark shadow” over global markets, Jim Chalmers is warning ahead of high level talks with the world’s top economies.

The federal treasurer is heading to Washington DC this week for summits with the G20, the International Monetary Fund (IMF) and the World Bank.

Ahead of his departure, Mr Chalmers said on Wednesday Australia was vulnerable to global “volatility”.

Treasurer Jim Chalmers has issued a grim warnign ahead of G20 talks. Picture: NewsWire / Glenn Campbell

Treasurer Jim Chalmers has issued a grim warnign ahead of G20 talks. Picture: NewsWire / Glenn Campbell

“Australia is not immune from the volatility and vulnerability which characterises the global economy,” he said.

“The risk of further escalation in the Middle East threatens a resurgence in oil prices and casts a dark shadow over the global outlook.

“Conflict in the Middle East compounds the pressures already coming at us from the war in Ukraine, the slowdown in China, persistent global inflation, tepid global growth and sharp movements on stock markets.”

The post-pandemic oil price surges have hit Australian households hard with fuel at the bowser often spiking over 200 cents per litre, it has been a key cost-of-living pressure.

Australians are being hit hard by high petrol prices. Picture: NCA NewsWire / Gaye Gerard

Australians are being hit hard by high petrol prices. Picture: NCA NewsWire / Gaye Gerard

Mr Chalmers, like many others economy tsars in the developed world, has been balancing cost-of-living relief with anti-inflationary measures, while navigating a series of domestic and international interest rate hikes and a global economy hamstrung by supply chain and energy source disruptions.

“This is a really critical time to confer with colleagues and counterparts,” he said.

The growing conflict in the Middle East is casting a “dark shadow” over global markets, Jim Chalmers is warning ahead of high level talks with the world’s top economies.

The federal treasurer is heading to Washington DC this week for summits with the G20, the International Monetary Fund (IMF) and the World Bank.

Ahead of his departure, Mr Chalmers said on Wednesday Australia was vulnerable to global “volatility”.

Treasurer Jim Chalmers has issued a grim warnign ahead of G20 talks. Picture: NewsWire / Glenn Campbell

Treasurer Jim Chalmers has issued a grim warnign ahead of G20 talks. Picture: NewsWire / Glenn Campbell

“Australia is not immune from the volatility and vulnerability which characterises the global economy,” he said.

“The risk of further escalation in the Middle East threatens a resurgence in oil prices and casts a dark shadow over the global outlook.

“Conflict in the Middle East compounds the pressures already coming at us from the war in Ukraine, the slowdown in China, persistent global inflation, tepid global growth and sharp movements on stock markets.”

The post-pandemic oil price surges have hit Australian households hard with fuel at the bowser often spiking over 200 cents per litre, it has been a key cost-of-living pressure.

Australians are being hit hard by high petrol prices. Picture: NCA NewsWire / Gaye Gerard

Australians are being hit hard by high petrol prices. Picture: NCA NewsWire / Gaye Gerard

Mr Chalmers, like many others economy tsars in the developed world, has been balancing cost-of-living relief with anti-inflationary measures, while navigating a series of domestic and international interest rate hikes and a global economy hamstrung by supply chain and energy source disruptions.

“This is a really critical time to confer with colleagues and counterparts,” he said

“There will be in-depth discussions on the global economy, the energy transformation, economic security and reform of our multilateral institutions.”

Among those Mr Chalmers will meet with are the new Japanese Finance Minsiter Katsonobu Kato, US Treasury Secretary Janet Yellen, South Korean Economy Minister Choi Sang-Mok and Canadian Deputy Prime Minister Chrystia Freeland.

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