Chalmers said that although the country had high and rising inflation,rising interest rates,falling real wages,long-term pressures around productivity and large government debt,the future was not completely bleak.
“The commentators,and the cartoonists,in particular,I’ve noticed,have taken to describing this economic situation that we’re dealing with now – if you’ll pardon the language – as a bit of a shit sandwich,” he told staff in Canberra on Thursday afternoon.
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“But I don’t really see the situation that we have inherited,and that we will work with you on,I don’t really see it the same way that the commentators and the cartoonists see it.
“I think that there are good reasons to be optimistic about our economy,and also optimistic about our country,so long as we are good enough to navigate this tricky set of circumstances that we’ve inherited in the near term.”
As Chalmers talked up the economy,consumers are already showing some signs of strain from the combination of inflation,interest rates and falling real wages.
A NAB survey of more than 2000 people found one in two are switching to cheaper brands,turning off electrical appliances and lights or making fewer car trips to save petrol.