To prepare for a more disorderly world, Australia will need to significantly boost its 2.2 per cent of GDP defence spending to something with a “four” in front of it.
The immediate fallout from the geopolitical upheaval is a global energy shock – a spike in oil and gas prices that will feed into the return of inflation, which was itself triggered by the pandemic shock that has shaken international supply chain continuity.
Morgan Stanley’s Australian-raised CEO James Gorman will tell the Summit that the Ukraine crisis will encourage more aggressive central bank rate hikes to tame inflation. That would push up the cost of servicing Australia’s massive public debt.
Internationally competitive economy
With structural budget deficits forecast as far as the eye can see, regaining control over the public finances is now a question of national security. Former treasurer Peter Costello says fiscal repair should take priority over tax…
