Chalmers says global economic turmoil will drive budget cuts, but Australia should avoid recession

Australian Treasurer Jim Chalmers has warned that escalating global economic turmoil will force federal budget cuts, citing very substantial and intensifying pressure on government finances. Despite these mounting economic headwinds, Chalmers expressed confidence that Australia can successfully avoid a recession.

During his assessment, the Treasurer pointed to the private sector as a key driver of rising inflation, while also factoring in the broader economic fallout stemming from the ongoing conflict in the Middle East.