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Treasurer looks to global conditions as IMF downgrades economic growth

Treasurer Josh Frydenberg says global conditions are contributing to Australia’s struggling economy after the world economic outlook reduced Australia’s growth forecast.

The International Monetary Fund has downgraded Australia’s economic growth forecasts by 0.4 per cent to 1.7 per cent.

But it outlines that growth is expected to recover to 2.3 per cent in 2020.

The Reserve Bank of Australia has lowered the official cash rate to a historic low but has indicated fiscal stimulus is needed to help the economy.

But Mr Frydenberg tells Ross Greenwood the downturn could be put down to global tensions.

“There’s no doubt when people look globally at the trade tensions, particularly between the US and China, that is affecting their level of confidence.”

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Image: Getty/Bloomberg