The International Monetary Fund’s (IMF) World Economic Outlook demonstrated a number of risks facing Australia and the global economy in 2014, and Treasurer Joe Hockey has today confirmed the figures.
Hockey stated that the expected growth rate of the Australian economy has been downgraded by 0.5% for both 2013 and 2014, placing 2013 at 2.5% growth, and 2014 at 2.8%, The Australian reported.
Of great interest is the increase in unemployment. The unemployment figure for 2013, 5.6%, is forecasted to rise to 6.0% in 2014.
"The downside risks documented in the World Economic Outlook confirms significant risks to the Australian budget that will need to be appropriately managed by the Coalition government,” Hockey stated.
This news comes a day after the release of ANZ’s September job advertisements report, which demonstrated a minor increase in jobs ads of 0.2% in September.
While the report refers to the amount of job ads “effectively unchanged” by this increase, it does signify the first increase in job ads in six months.
“Trends in job advertising appear to be stabilising,” Ivan Colhoun, Australian chief economist at ANZ, said. “This is consistent with ANZ’s view that much of the rise in the unemployment rate may have already occurred and that it is likely to drift only modestly higher.”