TECH TO DRIVE GAINS - PM; GROWTH DIPS
Technology to drive productivity gains, says PM
Prime Minister Anthony Albanese says further adoption of technology is critical in driving an improvement in Australia’s level of productivity. In an address to an economic forum, the PM said the economy needed to be modernised in order for the nation to maximise its natural competitive advantages. He said Australia could achieve substantial productivity gains if business had the confidence to adopt new technologies earlier and more widely. Mr Albanese said the Federal Government was investing in skills and training to help reach the target of 1.2 million technology-related jobs by 2030. He added that government also had a role in improving cybersecurity, upgrading the national broadband network, and in helping to lift community trust and confidence in artificial intelligence.
Economic growth on the wane
Australia’s economic growth is slowing, with households spending and saving less, according to latest quarterly gross domestic product figures. The Australian Bureau of Statistics said that the domestic economy grew by just 0.2 per cent in the March quarter, or 2.3 per cent over the previous 12 months. It was the weakest level of quarterly economic growth since the Covid wave during the September 2021 quarter. Export growth helped to sustain the economy, with services exports rising 7.7 per cent, attributed in part to a return of international students.
Trade volumes remain in the black
Meanwhile, Australia continues to record solid international trading volumes, with a trade surplus of more than $11.1 billion reported for April. The ABS figures, however, show that the monthly surplus fell by $3.6 billion (seasonally-adjusted), with lower exports of iron ore and minerals, metals and rural goods. Imports rose as supply chains recovered, while exports of services were rising to near pre-Covid levels.
RBA head warns of ongoing rate rises to curb inflation
Reserve Bank Governor Philip Lowe has flagged further rises in the cash rate as the central bank seeks to return the rate of inflation to the target range of 2-3 per cent. After the RBA board raised the cash rate target to 4.1 per cent, Dr Lowe said inflation in Australia had passed its peak but at seven per cent was still too high. He warned that if high inflation were to become entrenched in people’s expectations, it would be “very costly” to reduce later, involving even higher interest rates and a larger rise in unemployment. A combination of higher interest rates and cost-of-living pressures were leading to a substantial slowing in household spending, he said. Dr Lowe said the RBA board would continue to pay close attention to the evolution of wage costs and price-setting behaviour of firms.
Global demand for green hydrogen, says Bowen
Climate Change and Energy Minister Chris Bowen has talked up Australia’s renewable energy credentials while meeting his New Zealand counterparts, with a strong focus on the development of green hydrogen. Mr Bowen told a ministerial forum in NZ that green hydrogen would be exported around the world, with “huge interest” in Australian green hydrogen. Germany, for example, was co-investing in green hydrogen projects in the Illawarra region and at Port Augusta. The Minister reaffirmed the target of lifting the composition of renewable energy in the total energy market, from about one-third now to 82 per cent by 2030. Achieving the target would require massive investment in the electricity grid, building about 10,000 kilometres in transmission lines, he said.
Funding for university microcredential courses
The Albanese Government has allocated $18.5 million in pilot funding for the development and design of 28 microcredential courses provided by universities, to lift skills needs in priority areas. Education Minister Jason Clare said the 28 courses, at 18 universities, were selected from more than 90 funding applications, and would focus on the priority areas of IT, engineering, science, health, and education. He said microcredentials were short, focused courses in a specific area of study, designed to teach and upskill learners with targeted, job-relevant skills. A second round of funding was planned in the next 12 months.