Jim Chalmers drops big hint on upcoming budget after Washington DC trip

The Treasurer has offered a major hint about what Australians should expect from next month’s budget.

Treasurer Jim Chalmers has warned of “incredibly weak” economic growth over the next five years as he finalises his second budget.

He said the May budget would have three key priorities: cost-of-living relief, growing the economy and ensuring Australia is “more resilient to international shocks”.

His comments come after a short visit to Washington DC where he met with global financial leaders to discuss ongoing “complex and confronting” global conditions upon which the Budget would be formulated.

Treasurer Jim Chalmers has returned from his trip to Washington DC and has warned about the global economic outlook. Picture: NCA NewsWire / Martin Ollman

“This budget will be handed down in the context of an uncertain and volatile global economy which is precariously placed,” he said.

“One of the key messages from the engagements in DC was that although the global economy has managed to get through a difficult period in recent years, the risks in the global economy are still – in the language of the IMG – tilted to the downside, which means there is still a lot of uncertainty, a lot of volatility and a lot of vulnerability in the global economy.

“The IMF has said that they expect an incredibly weak five years of global economic growth.”

Dr Chalmers warned there was ‘a lot coming at us’. Picture: NCA NewsWire / Martin Ollman

He said despite there being “a lot coming at us”, there are “a lot of things going for us”.

“The best antidote to global economic uncertainty is responsible economic management here at home and that’s what the May budget will represent,” he said.

“Low unemployment, high prices for our exports … both of those things are helping the budget right now, but the pressures on the budget are intensifying after that.”

He said the cost-of-living help contained within the budget would not add to inflation, while there would also be a focus on growing the energy and care industries in order to grow the economy.

He said most of the remaining decisions on the budget will be finalised this week.

The budget will be handed down on May 9.