This week's Australian political news
Australia emerges quickly from recession
Australia has bounced back from its first economic recession in almost 30 years, with a 3.3 per cent increase in Gross Domestic Product over the September quarter. The renewed growth followed a sharp seven per cent fall in growth during the June quarter as Covid-19 restrictions hit the economy hard. Australian Bureau of Statistics figures show that household spending rose almost eight per cent over the quarter, reversing a 12.5 per cent fall in the previous quarter. But net exports and private investment fell during the quarter, curbing economic growth. Victoria’s second wave of coranavirus that began in late June meant that its economic output fell one per cent in the September quarter, the only state to record a reduction in quarterly growth.
Cyber security campaign goes public
Federal Home Affairs Minister Peter Dutton and Defence Minister Linda Reynolds have stepped up the Government’s cyber defence strategy, launching a campaign by the new Australian Cyber Security Centre (ACSC) to protect online security. The campaign forms a central part of the Government’s $1.67 billion Cyber Security Strategy, and aims to encourage Australians to report cyber incidents through the ACSC’s Report Cyber tool. The ACSC campaign will run on social media and digital platforms.
Queensland follows suit on big-spending budgets
Following big-spending budgets delivered in New South Wales and Victoria, the re-elected Queensland Government has handed down a state budget with a substantial lift in deficits and debt loads to help rejuvenate the state’s economy. Treasurer Cameron Dick’s state budget papers forecast an $8.6 billion deficit in 2020-21, up from the $5.7 billion deficit recorded in the previous financial year. State borrowings will rise to $93 billion in 2020-21, and to $121 billion by 2023-24, as the Government pours funds into the infrastructure and health sector, as well as into tourism, which was hit badly by Covid-19. The Government is also banking on forecast net interstate migration to Queensland of 86,000 people over the next four years.
Imports on the rise in post-Covid recovery
Australia’s monthly balance of trade on goods and services increased 28 per cent to $7.5 billion in October, as exports and trade in services - including in travel and tourism - picked up after restrictions were progressively eased. It followed the release of ABS trade figures for the September quarter, which showed that imports into Australia were rising again as consumption recovered after months of Covid-19 restrictions. The ABS said exports fell six per cent and imports of goods and services rose three per cent during the quarter. Consumption spending recovered in areas such as household and electrical products, non-industrial transport equipment, and clothing and footwear.
Birmingham moves to diversify non-Chinese export markets
Federal Trade Minister Simon Birmingham says the Government is working with primary producers to diversify and expand into alternative markets to China, after the imposition of tariffs of more than 200 per cent on wine exports into the Chinese market. Senator Birmingham confirmed meetings with representatives of the agricultural, wine, timber, seafood and grains industries to reach other markets, using a network of trade agreements. He also noted that Australia would continue its economic engagement with China and would not cease trading relationships, given the country’s population base and growing middle class.
Tehan confident on Chinese student returns
Meanwhile, Federal Education Minister Dan Tehan remains hopeful that Chinese students will return to study in Australia, reviving the $12 billion education export market to Chinese students. Mr Tehan said Australia was seeing strong commencements online from Chinese students, with mutual benefits for both countries from Australia’s international education system. He also noted that Australia’s record in curbing the coranavirus outbreak would help in luring students away from potential competitor markets such as the United Kingdom or Canada.