INTERNATIONAL AGENCIES

Covid laggards beat Aussies to top of the class for economic performance

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Original article by Patrick Commins
The Australian – Page: 6 : 21-Dec-20

Data from the OECD shows that Australia’s real GDP contracted by 4.2 per cent over the first nine months of 2020. In contrast, real GDP in the US and Brazil declined by just 3.5 per cent and 4.1 per cent respectively during this period, despite the fact that they have been hit much harder by COVID-19 case numbers and deaths. The economies of many countries also rebounded more quickly in the September quarter than Australia, despite having been hit harder in the June quarter. Elliot Clarke of Westpac attributes this to Australia’s tougher lockdown restrictions and the second wave in Victoria.

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, WESTPAC BANKING CORPORATION – ASX WBC

Bright future ahead: OECD forecasts great things for Australia

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Original article by Patrick Commins
The Australian – Page: 1 & 5 : 2-Dec-20

The OECD is upbeat about the outlook for the Australian economy, forecasting that it will grow by 3.2 per cent in 2021. This compares with its previous forecast of 2.5 per cent. The domestic economy is now expected to contract by just 3.8 per cent in 2020, rather than 4.1 per cent as forecast by the OECD in September. The Paris-based organisation has also cautioned against withdrawing fiscal and monetary policy support prematurely. Meanwhile, economists have forecast that the economy grew by between 2.8 per cent and four per cent in the September quarter, ahead of the release of national accounts data on 2 December.

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

Reform taxes to help economy recover, IMF tells Australia

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Original article by John Kehoe
The Australian Financial Review – Page: 2 : 26-Oct-20

Harald Finger of the International Monetary Fund has expressed support for federal government measures such as the JobKeeper wage subsidy scheme in response to the coronavirus pandemic. Finger also agrees that the JobKeeper scheme needs to be wound back as the domestic economy recovers, and the focus should shift to economic reforms that boost growth in productivity and investment. The IMF Mission chief to Australia also advocates a reduction in the corporate tax rate and increasing the goods and services tax.

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INTERNATIONAL MONETARY FUND

Australia among highest corporate tax collectors: OECD

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Original article by Matthew Cranston, Tom McIlroy
The Australian Financial Review – Page: 7 : 9-Jul-20

A report from the Organisation for Economic Co-operation & Development shows that corporate tax accounted for about 5.5 per cent of Australia’s GDP in 2017. This compares with an average of three per cent across all OECD member nations. The US and the Bahamas are among 15 jurisdictions whose corporate tax rates comprise less than two per cent of GDP. Treasurer Josh Frydenberg contends that Australia’s lower value add tax is a key reason for the nation’s personal and corporate income tax rates being higher than the OECD average.

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, AUSTRALIA. DEPT OF THE TREASURY

Second wave would be $25bn tsunami

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Original article by Patrick Commins
The Australian – Page: 4 : 11-Jun-20

The OECD’s latest economic outlook report forecasts that the Australian economy will contract by five per cent in 2020, compared with an average decline of 7.5 per cent among member nations. The OECD also expects the domestic economy to rebound by 4.1 per cent in 2021, in the absence of a second wave of the coronavirus. A fresh outbreak would reduce GDP growth in 2021 to just one per cent, according to the OECD. The Paris-based organisation expects the global economy to contract by 6% in 2020, and 7.6% if there is a second wave.

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT

World Health Assembly agrees to independent inquiry and global strategy to fight COVID-19

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The New Daily – Page: Online : 20-May-20

The World Health Assembly has formally adopted a resolution calling for an impartial and independent review into the global response to the coronavirus pandemic. There was unanimous support among the World Health Organization’s member nations for the push to hold an inquiry, which had been led by Australia and the European Union. Health Minister Greg Hunt and Foreign Affairs Minister Marise Payne have welcomed the passing of the resolution.

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WORLD HEALTH ASSEMBLY, WORLD HEALTH ORGANIZATION, AUSTRALIA. DEPT OF HEALTH, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE

World coalition backs Australia

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Original article by Ben Packham
The Australian – Page: 1 & 6 : 18-May-20

The UK, New Zealand and Japan are among 62 nations that have agreed to support a motion calling for an independent inquiry into the origin of the coronavirus when the World Health Assembly meets on 18 May. Australia has led the push for an inquiry into the pandemic, and Foreign Minister Marise Payne stresses that international collaboration is needed so the world can prevent or respond to future pandemics. Meanwhile, President Donald Trump has indicated that the US may be prepared to restore its funding for the World Health Organization, although only the same amount of money that China contributes.

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WORLD HEALTH ASSEMBLY, AUSTRALIA. DEPT OF FOREIGN AFFAIRS AND TRADE, WORLD HEALTH ORGANIZATION, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

IMF jumped the gun with dire forecasts: Frydenberg

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Original article by Patrick Commins
The Australian – Page: 4 : 16-Apr-20

Treasurer Josh Frydenberg has downplayed the International Monetary Fund’s latest economic growth and unemployment forecasts for Australia. He argues that they were made prior to pandemic stimulus measures such as the $130bn JobKeeper scheme. New figures show that more than 838,000 businesses have applied for the wage subsidy to date. The IMF has forecast that the domestic economy will contract by 6.7 per cent in 2020, although Alan Oster of National Australia Bank expects GDP growth to fall by just 4.3 per cent.

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AUSTRALIA. DEPT OF THE TREASURY, INTERNATIONAL MONETARY FUND, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Worst year since Great Depression

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Original article by Patrick Commins
The Australian – Page: 1 & 4 : 15-Apr-20

The International Monetary Fund has forecast that the Australian economy will contract by 6.7 per cent in 2020 due to the coronavirus lockdown. However, the IMF expects the domestic economy to rebound by 6.1 per cent in 2021, assuming that measures to contain the virus are successful. The IMF’s latest World Economic Outlook also forecasts that global GDP growth will fall by three per cent in 2020, compared with just 0.1 per cent during the global financial crisis. The IMF has warned of the potential for a second wave of the coronavirus if a vaccine is not developed.

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INTERNATIONAL MONETARY FUND

Will Australia win from new tax rules?

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Original article by Tom McIlroy
The Australian Financial Review – Page: 3 : 6-Jan-20

The OECD and the Group of 20 are heading an initiative to re-write international tax laws to cope with the digital age. The proposed system could include an effective minimum rate of global tax and the adoption of new global allocation rules. Some countries have sought to act unilaterally in the adoption of digital services taxes on US digital companies like Google and Facebook, but the Trump administration has sought to ‘punish’ such countries by the imposition of tariffs. There are hopes a new international tax system could be in place by the end of 2020, but some tax experts have their doubts.

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ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, GROUP OF TWENTY (G-20), FACEBOOK INCORPORATED, GOOGLE INCORPORATED