E&OE TRANSCRIPT
TV INTERVIEW
PM AGENDA, SKY NEWS
WEDNESDAY, 4 MARCH 2020

SUBJECTS: National Accounts; Impact of Coronavirus on the economy.

KIERAN GILBERT, SKY NEWS: Joining me now, the Shadow Treasurer, Jim Chalmers. Thanks for your time. You are criticising the Government for not getting back to surplus but also calling for stimulus. Are you arguing both sides of the street?

JIM CHALMERS, SHADOW TREASURER: Hundreds if not thousands of times last year the Treasurer was saying two things: the Budget is back in black and the economy's back on track. We are well within our rights to ask whether either of those things are still true.

GILBERT: Certainly the growth was still there in the December quarter. Were you encouraged by that? Obviously you want to see the economy as strong as possible?

CHALMERS: The economy slowed in the December quarter.

GILBERT: It was 0.5 per cent and it was better than market expectations.

CHALMERS: It was worse than the 0.6 in the quarter before. The economy slowed in the December quarter and we need to be upfront about that. I know that people are talking about expectations but what matters isn't how the number compares to what some economists were predicting. Some of them were predicting that it would be stronger than that and some were predicting it to be weaker than that. What matters is the data. The economy slowed in the December quarter. It's below average, below trend, and below what Morrison and Frydenberg inherited. There are serious challenges in the numbers which were released today. Business investment went backwards again and it's gone backwards for three quarters in a row. Yes the Coronavirus is going to have a substantial economic impact but the economy was already weak and weakening before the Coronavirus hit.

GILBERT: Do you recognise what the Treasurer says? He says it repeatedly in answer to you and the Labor Party. He says that Australia compared to other major developed nations is actually doing quite well.

CHALMERS: On some numbers, but not on others. For example our unemployment rate, which is rising and at 5.3 percent now, compares really badly with most of those countries who've got unemployment with a 3 or a 4 in front of it. It depends what number you're talking about.

GILBERT: You've got a division to get to in the House of Representatives so I'll let you go.

CHALMERS: Thank you.

ENDS