8legs: Imf-world bank spring meetings

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Jim Chalmers is told NOT to give Aussies a handout in next budget

IMF warns Jim Chalmers against broad-based cost-of-living handouts in the upcoming budget.
IMF economist Gourinchas cautioned against energy subsidies as costly and poorly designed.
IMF downgraded Australia’s near-term growth to about 2% in 2026 and warned of inflation.
Inflation in Australia is expected to reach about 4% in 2026.
Chalmers said Australia is better placed than many, but energy shocks still matter.
IMF Deputy Hauser noted short-term inflation expectations are rising but long-term expectations stay stable.
Chalmers plans to focus the budget on fuel security, supply chains, resilience, and reform.
IMF warned that prolonged war could push the global economy toward recession.
IMF highlighted the risk of inflation from energy supply disruptions.
Chalmers traveled to Washington for IMF-World Bank meetings amid global uncertainties.
IMF suggested energy price spikes be looked through if inflation expectations stay anchored.

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