Global economic giants worse inflation and forecast recession, Australia included

By Dana Malcolm

Staff Writer

#Australia, October 29, 2022 – One of the top twenty economies in the world, Australia has the 9th highest GDP per capita in the world but even that healthy economy is feeling the pinch of Covid-19 and the Russian invasion with energy prices reaching shocking levels.

September inflation sits at 7.3 percent, a 32-year high.

The main culprit was the country’s rising energy prices.  And still consumers’ energy bills in the country are set to increase by more than 56 percent in the coming months and 150 thousand people will possibly be laid off, according to reports from 9 News Australia.

The Government is scrambling to put measures in place to soften the hard transition with extensions on paid parental leave, cheaper childcare, minimum wage increase and cheaper medication, but the prognosis hasn’t improved.

In light of the massive increase in energy bills, the Government is demanding that The Australian Competition and Consumer Commission asses the code of conduct for the gas industry and reassess the agreements that govern reasonable pricing for consumers, according to the Guardian.

With the decrease in oil production sanctioned by the Organization of Petroleum Exporting Countries (OPEC) in the last month, things could get worse for the country.

Six of the largest economies globally are facing tough times as well.  Japan barely avoided a recession this quarter, China is experiencing a slowdown but remains above water, Germany is headed for recession this winter, the U.S. is projected to be in recession in the next 12 months, Canada is expected to tip into a ‘modest recession’ this quarter and Brazil is expected to fall into its deepest recession on record.