The prime minister has conceded that as a result of the global slowdown it will be virtually impossible for Australia to avoid a recession this year.
“The impact of a worsening global economic recession will make it virtually impossible for Australia to sustain positive economic growth for the period ahead," Mr Rudd said, according to The Sydney Morning Herald.
Mr Rudd’s warning comes after the International Monetary Fund (IMF) warned last week the global economy would contract for the first time in 60 years in 2009.
"A huge slice of our economic activity comes through the traded sector of our economy. If the global economy therefore is shrinking … then it's going to have roll-on consequences for our growth, our jobs and our budget,” he said.
