May election faces economic recovery

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The Treasury Department, Reserve Bank of Australia and market economists forecast strong economic growth from late this year as consumers cashed in to reopen their wallets after lockdowns in NSW, Victoria and the ACT.

A booming economy is expected to be fueled by more than $ 200 billion in excess household savings, high vaccination rates, relaxation of health restrictions, reopening of international and state borders, and low interest rates.

The RBA announces an economic recovery and forecasts robust economic growth of 5.5 percent for the next year, although it expects wage growth and inflationary pressures to remain moderate.

A budget brought forward in April, followed by an election in May, would repeat the coalition’s successful strategy in 2019 to wrest victory from Labor.

Usually the federal budget is held in May.

Mr Morrison hinted last month that there might be another budget before an election.

Most observers had previously advised the prime minister to call elections shortly after Australia Day for an election date in March.

While this remains a possibility, it is no longer considered the most likely scenario.

The government is including the cost of electoral spending obligations in the Mid-Year Economic and Fiscal Outlook (MYEFO), due to be published by December, although some of these items remain classified under “decisions taken but not yet announced”.

Days of controversy

Some ministers whose policy proposals for MYEFO have been rejected by the government’s spending review committee have been advised to resubmit their proposals for a potential April budget.

Mr Morrison returned to Sydney on Friday from the climate and G20 talks in Scotland and Italy to ditch days of controversy over French President Emmanuel Macron, who claimed the prime minister had him over the $ 90 billion canceled – Submarine contract lied to.

Mr Morrison immediately turned the debate to economics, showing all the hallmarks of an upcoming election campaign.

He appeared in the M4-M5 connecting tunnel in Sydney wearing a hard hat and yellow reflective vest on Friday, announcing the re-entry of foreign workers before Christmas and saying the nation must fix the blockades on supply chain ports if it does make the most of an economic one Recovery after lockdown.

The Prime Minister will visit several peripheral seats in regional NSW this week.

Recent major polls show Labor is leading the coalition by about 52:48 and 53:47, on a bipartisan basis.


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