Australia budgets for global 'tariffs and tensions'

Australia’s Treasurer unveiled a pre-election budget on Tuesday, revealing a US$17 billion deficit as the country faces global economic uncertainty.

 Jim Chalmers, Australian Treasurer said  "The global economy is volatile and unpredictable. The 2020s have already seen a global pandemic, global inflation, and now the threat of a global trade war. The whole world has changed as a consequence, tariffs and tensions abroad have been accompanied by storms here at home, ex-tropical cyclone Alfred could wipe a quarter of a percentage point off quarterly growth. North and far north, Queensland have flooded too. Storm clouds are gathering in the global economy as well."

However, he emphasized that Australia is well-positioned to handle these challenges, claiming the country is recovering from inflation better than most advanced economies. Chalmers also announced an additional US$31.49 billion in defense spending by the mid-2030s, increasing defense funding beyond 2.3% of GDP.