"The Treasurer’s economic update today is a sober and realistic review of the challenges the Australian economy faces over the year ahead," Innes Willox, Chief Executive of the national employer association Ai Group, said today.
"The data produced today is not a surprise. Although the economy has displayed tremendous resilience over the past 30 months, an array of external forces, supply shocks, labour constraints and the impact of some of the stimulatory measures taken over that period mean we are in the midst of an inflationary spike and face clear risks of it being prolonged.
"This will challenge policy makers, businesses and their workforces. The September Jobs and Skills Summit with its focus on productivity, skills, training, migration and workplace reform measures will hopefully provide the start of a coordinated national response.
"More than ever, we cannot allow fiscal, monetary and wages policy to work against each other as we navigate what are clearly challenging times. The reality is that the thousands of businesses from across the economy still emerging from the impacts of the COVID response will face increasingly tough conditions over the next part of the economic cycle.
"The October 25 budget provides a key marking point in the Federal Government’s response. A strong focus on building economic resilience must be at its core," Mr Willox said.
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