The IMF predicts Australia’s expected GDP growth to be 4.5 per cent in 2021, before expecting economic growth to reach 2.8 per cent in 2022.
As a result, the IMF upgraded Australia’s economic growth outlook, noting that the “Australian economy continues to show a strong recovery momentum” and that a “favourable labour market recovery continues to support a strong rebound in private consumption, added by wealth effects from rising house prices”.
In an interview on Sky News, Mr Frydenberg was asked whether winding up the JobKeeper scheme is a major risk to the economy amid the IMF’s warning to countries not to pull stimulus too soon.
“Actually, the numbers from the IMF factor in the end of JobKeeper,” Mr Frydenberg said.
“It was always a temporary program. We always said it would be an emergency payment.”
Mr Frydenberg also responded to New Zealand Prime Minister Jacinda Ardern’s announcement regarding the New Zealand-Australia travel bubble, saying he’s confident it will provide a boost to the tourism sectors in both countries.
“That’s good news for the economy that we’ve now got this Trans-Tasman bubble and it’s a credit to both countries how they’ve managed the virus,” the Treasurer said.
“We’ve seen that in the pre-pandemic numbers, with more than $1.5 billion injected into the Australian economy from New Zealand tourists. This is our busiest international route; more than 7 million people travelling on it a year pre-COVID.
“I am confident and we’ve seen Qantas announce that they’ll ramp up more than 120 flights a week with their Jetstar services, as well. You’ve seen Air New Zealand making announcements about their number of flights, as well.
“I am confident that this will provide a boost to both the New Zealand and Australian economies and to the tourism sectors at a time when they absolutely need it.”