Scott Morrison expects ‘soft’ growth figures

Despite the challenge, Scott Morrison points to property values as a sign the Coalition has steady hand on the economy.

Prime Minister Scott Morrison. Picture: AAP

Scott Morrison says he expect the latest economic growth figures to be “soft” but assures Australians that his government has the right economic policies to deal with any dip.

Economists except the national accounts on Wednesday to show the weakest growth figures since the global financial crisis, and perhaps since the introduction of the GST in 2000.

The Prime Minister said on Monday that the government was well aware of the challenges for the economy.

“All of this was part of this year’s budget in the full knowledge that we would be facing a very difficult quarter, particularly in that June quarter,” he said.

“I suspect the June quarter results will be soft, but what matters is the plan that is already in place to address that both now and into the future.”

Mr Morrison said in Western Sydney that CoreLogic’s recent house price data showing an improvement in residential property values was a sign of the country’s fundamental economic strength.

“I mean the June quarter, of course, does not include the second of the cash rate reductions from the RBA nor does it include the tax cuts that came through,” he said.

“I note today that CoreLogic’s house price data shows that we have seen an improvement and they have put that improvement down to the stability in Federal Government and the other improvements they have seen in credit easing as well as the cash rate and tax cut impacts on the economy.

“So our view is we have got the plan, let’s have a look at the September quarter results which will take into account obviously the first round impacts of what came out of the tax cuts and the cash rate cuts and then we’ll go from there.

“You know, in difficult global economic times, Australians don’t want a Government that responds with knee-jerk reactions.”