Integrity Score 240
No Records Found
No Records Found
No Records Found
The deputy governor of the Reserve Bank of Australia issued a warning on Wednesday that the outlook for the world economy was not promising.
She said, "It's kind of on a knife-edge.”
ABC News reported that the Bank of England declared that Britain was likely already in a recession less than 48 hours later.
Concerns about the United States are mounting as it appears to be entering a recession.
Additionally, China's economy is struggling as a result of issues with its massive real estate market and its zero-COVID policy.
Will Australia inevitably have a recession?
According to RBA officials, they remain optimistic that Australia will avoid entering a recession at this time.
They claim that Australia can hopefully be protected from any negative shocks due to the volume of savings in the economy and the country's unusually tight labour market and the level of savings in the economy, can hopefully insulate Australia from any negative shocks that originate overseas.
But not everyone is optimistic.
Some economists suspect that, because so many countries are lifting interest rates in an uncoordinated frenzy, global growth will slow dramatically in the next 12 months and Australia won't be able to avoid the fallout.
Jo Masters, the chief economist of Barrenjoey, says a probable recession is "on the cards" for Australia.