There’s increased optimism in the global economy with the latest world economic outlook from the International Monetary Fund (IMF).
In figures released today, the IMF revised growth estimates from 3.7% to 3.9%, pointing to improved performances across Europe and Asia as well as the recently passed tax cuts in the United States.
It’s all music to Scott Morrison’s ears, after the treasurer repeatedly promised “better days ahead” in last year’s budget.
“We’re already seeing it,” the Treasurer said this morning.
“Over the course of last year 400,000 Australians got a job. That is the strongest year of jobs growth of any on record.”
In a push to turn the economic success into political success the Treasure reiterated income tax cuts would be delivered to middle-income earners “as soon as we can”.
“People will see personal income tax cuts before big companies will see company tax cuts.”
But the fight over corporate tax cuts for businesses turning over more the $50 million per year continues, with the Prime Minister pointing to projections in the United States following Donald Trump’s tax cuts.
“If you give businesses the opportunity to invest more, they will do that and they will employ more,” Malcolm Turnbull said.
“It’s economics 101.”
The IMF projection for growth in the USA came with the caveat that growth would be short lived, warning lower growth “from 2022 onwards”.
The improved IMF forecast also bodes well for the Australian economy and the projected budget surplus in 2020/21.