The Greens oppose the CPRS not because it is too weak, but because it will point Australia in the wrong direction with little prospect of turning it around in the timeframe within which emissions must peak, says Senator Christine Milne.
Gazing into the economic crystal ball
|
According to the Budget, 2008-09 will be the sort of soft landing the country’s economic establishment aimed for and utterly missed in the late 1980s. Real GDP growth is forecast to fall to 2.75%, led by household investment – expected to soften – and business investment, which will continue to grow at Paul Keating-type gangbuster rates, while Australia’s terms of trade will grow at an historic 16% in 2008-09. The only risk appears to be the assumption that recovery from the drought will generate substantial farm income growth, but exports are forecast to grow 6%. The weaker economy will see lower employment growth, with unemployment rising to 4.75%, moderated by a slight fall in the participation rate, and a slight fall in both headline and underlying inflation back to 3.25%, benefitting from steady wage growth of 4.4%, the same as this year. |
|
|
