Australia news live: Australia to give another $95m in military aid to Ukraine; illegal cigarettes sales to be part of official GDP | Australia news
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Chalmers rejects RBA suggestions his economy is stuck in slow growth
Luca Ittimani
Finance Minister Jim Chalmers has rejected Reserve Bank suggestions that Australia’s economy may not grow faster.
Wednesday’s data showed the economy grew slower than expected in the September quarter, bringing annual growth to just 2.1%; This rate is still the fastest in two years, driven by increased productivity growth.
Inflation picked up over the same period, leading Federal Reserve deputy governor Andrew Hauser to make the following decision in November: to recommend The economy was reaching its speed limit, and if that limit was exceeded, higher spending would increase prices.
Chalmers denied Australia was stuck at that speed limit when asked on ABC’s 7.30.
He drew attention to the increase in productivity:
The government’s economic plan is to remove speed limits in the economy and try to make the economy more efficient. [but] You can’t turn these things around overnight… Today’s numbers represent good progress.
However, high growth and inflation increased expectations for an interest rate increase. When asked how this would affect his economic credibility, Chalmers said:
“I do not offer a running commentary on the decisions taken independently by the Central Bank… We know there are still challenges. Inflation is persistent.”
Illegal cigarette sales slow economic growth
Luca Ittimani
The Australian Bureau of Statistics plans to take into account illegal cigarette sales as years of declining legal purchases are starting to negatively impact economic growth.
The ABS measures tobacco sales through supermarket chains’ scanner data, but consumers are turning away from legal sales towards black market tobacco and illicit e-cigarettes.
Legal tobacco sales fell 29% nationwide last year; This included a nearly 11% decline from June to September, dragging down overall measured economic activity. There is no sign that Australians are actually smoking 29% less.
To correct this statistical oddity, the ABS announced yesterday that it would estimate illicit purchases of tobacco and e-cigarettes. On Senate estimates last night, Nationals Senator Matt Canavan asked deputy statistician Brenton Goldsworthy how this would work:
How will you do this? Are you going to infiltrate the gangs yourself, Mr. Goldsworthy, to estimate actual sales volumes? I think you can handle this.
Goldsworthy, bespectacled and handsome, said consumption could be estimated by wastewater detection, a method used by the crime intelligence commission, but the ABS also needed to find out where the tobacco was being imported and the size of the profit margins going to retailers, who would in this case be criminal gangs.
Goldsworthy said the new tobacco sales estimates will be factored into GDP in about 12 months.
Tom McIlroy
Australia will give Ukraine another $95 million in military support in the war against Russia and has stepped up sanctions on Moscow’s shadow fleet of oil tankers.
Defense minister Richard Marles and foreign minister Penny Wong announced the plan this morning, saying it brings Australia’s total support to Ukraine to more than $1.7 billion since the start of the conflict.
The Albanian government’s commitment, together with New Zealand, will go towards the Priority Ukraine Requirements List (PURL), a NATO-led initiative aimed at providing critical military equipment to Ukraine.
The new funding includes $43 million for ADF materiel and equipment, including tactical air defense radars, ammunition and combat engineering equipment, as well as $2 million for the Drone Capability Coalition.
The last tranche of 49 M1A1 Abrams tanks gifted by Australia will be delivered to Ukraine in the coming weeks.
The new sanctions will target 45 so-called shadow fleet ships used to support Russia’s efforts to circumvent sanctions imposed by Australia and like-minded partners.
“Australia remains uncompromising in its support for Ukraine. These commitments will make a tangible difference in Ukraine’s defense against Russia’s illegal and immoral occupation,” Marles said.
Welcome
Good morning and welcome to our live news blog. I Martin Farrer With the best of last night’s stories Nick Visser takes you through the day.
Secretary of Defence, Richard Marlesand the minister of foreign affairs, Penny WongThey announced that they were providing more support to Ukraine with $95 million in military support for the war against Russia. It was stated that Australia will also increase sanctions against Moscow’s shadow fleet of oil tankers. More to come.
Accountant, Jim ChalmersHe rejected the Reserve Bank’s suggestions that the Australian economy could not grow faster. But amid fears the RBA may be forced to raise interest rates, Chalmers told the ABC’s 7.30am program that “persistent inflation” was among the challenges he faced. More is coming.
Speaking of economics, the ABS says illegal tobacco sales are now so large that they will become part of our official economic statistics.
