The continuing interest rate squeeze and falling share markets, are expected to slice consumer spending habits, which in turn will slow the economy and force an extra 75,000 Australians into unemployment by the middle of next year.
While there has been a small concession for Australian households last week with the Reserve Bank’s first rate cut in 7 years, we are not out of the dark yet it seems. David Uren, the Economics correspondent for The Australian cautions the “Treasury expects the unemployment rate to rise from its recent historic low of 4 per cent to reach 4.75 per cent by the middle of next year.”
Rising Australian Debt
The proliferation of household debt is then predicted to soar to new heights, with more and more Australians failing to make ends meet.
As the Treasuries economic outlook stated recently, “In the current circumstances, where interest rates have risen considerably over a long period of time, there has been an increase in the number of individuals experiencing financial stress”.
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