Australia’s economy expanded slower than economists forecast last quarter after households boosted savings, suggesting the central bank may need to do more to spur spending as a mining investment boom wanes. The Aussie fell.
Australia’s dollar, the world’s best- performing major currency of the past decade, may need to slump 40 percent to restore economic competitiveness as a local mining boom ends, said former government adviser Ross Garnaut.
The Australian dollar needs to weaken “by a large amount” to restore competitiveness eroded by two decades of prosperity, according to Ross Garnaut, who advised former Prime Minister Bob Hawke during the 1980s overhaul of the nation’s economy.
Australia, the fourth-largest wheat exporter, risked more climate-change damage than other developed countries partly because of the threat to its agriculture, said Ross Garnaut , the federal government’s adviser on the topic.
Australia can shutter carbon intensive coal-fired power plants in Victoria state, limiting operations to when demand for electricity surges during summer, government climate change adviser Ross Garnaut said.
Australian climate-change adviser Ross Garnaut says a carbon price of A$26 ($28) a metric ton may raise about A$11.5 billion in the first year if planned laws aimed at curbing emissions are introduced.
The cost to the Australian economy of tackling climate change will increase because of a “late start globally” in efforts to curb carbon emissions, the federal government’s climate change adviser Ross Garnaut said.