Australia's Economic Resilience: Labor's Focus Amid Global Volatility

Australia's Labor government, following a decisive election victory, is prioritizing efforts to boost productivity and address budget challenges in response to escalating global economic volatility. This was outlined by Treasurer Jim Chalmers in a National Press Club speech scheduled for Wednesday.

Chalmers emphasized that while the budget has strengthened and economic growth is visible, the nation still faces issues with productivity and resilience necessary to withstand global volatility. He stated, "The best defence against global volatility and the best way to lift living standards is with a more productive economy, a stronger budget, and more resilience."

The Australian economy showed minimal growth in the first quarter, impacted by cautious consumer spending and reduced government expenditure. Additional challenges include U.S. tariffs compounded by potential Middle East conflicts that could increase oil prices. Despite this, foreign investors appear to be focusing on Australia's domestic stocks as a refuge amid the trade uncertainties.

(With inputs from agencies.)