Australia warns of major global economic disruptions ahead

Australia's Treasurer Jim Chalmers has expressed concerns about the potential effects of new policies from the US administration. He described these effects as "seismic," indicating they could greatly impact the global economy. Chalmers made these remarks ahead of his upcoming national budget announcement. In this budget, set to be revealed on Tuesday night, Chalmers will introduce new cost-of-living assistance for Australians. This includes extending subsidies for electricity bills for six months, which will cost the budget A$1.8 billion (approximately $1.1 billion). Chalmers anticipates a small revenue boost, but the global economic situation, influenced by US President Donald Trump's return to office, has created uncertainty. Chalmers highlighted various global issues, including conflicts in the Middle East and Europe, which add to this uncertainty. He stated that the budget aims to respond to these challenges and strengthen Australia's resilience against external shocks. Elections are expected in Australia by May 17, with Prime Minister Anthony Albanese preparing to launch his campaign soon. His Labor government is currently in a tight race with the opposition, though polls suggest slight improvements for them as the election draws nearer. Chalmers acknowledged the ongoing concerns over the rising cost of living in Australia, including a housing crisis. However, he noted recent positive developments, such as a cut in interest rates by the Reserve Bank of Australia for the first time in four years. He believes the economy is beginning to improve, with lower inflation, rising wages, and low unemployment rates. Despite similarities in policies with the former Biden administration, Chalmers indicated that there would be no new announcements regarding industry and green energy in the upcoming budget.