Latest news with #Bustamante
Perth Now
a day ago
- Business
- Perth Now
Economic outlook blooms with key data to guide rate cut
Australia's economic growth prospects have been upgraded by an international financial body as mortgage holders await fresh inflation figures that could cement a Reserve Bank rate cut. United Nations financial agency the International Monetary Fund on Tuesday said a modest de-escalation in trade tensions had boosted the prospects of the global economy. The fund has raised its forecast for Australian GDP growth this year to 1.8 per cent in its July update to its World Economic Outlook, 0.1 per cent higher than its last projection in April. Global growth is also expected to be 0.1 per cent higher at three per cent, while both the Australian and world economies received a 0.2 per cent upgrade for 2026, at 2.2 and 3.1 per cent respectively. But despite the easing of tariff threats as countries strike trade deals with the United States, the risks to the economy remain weighted firmly to the downside, said IMF chief economist Pierre-Olivier Gourinchas. "The current trade environment remains precarious," he said. "Tariffs could well reset at much higher levels once the 'pause' expires on August 1 or if existing deals unravel." IMF models suggest that would constrain the global economy by 0.3 per cent in 2026. US President Donald Trump on Monday flagged he was considering raising the baseline tariff rate for all countries, including Australia from 10 per cent to "somewhere in the 15 to 20 per cent range". Despite the tariff threat, Australia's economy is still expected to keep growing as falling interest rates give a boost to consumers. The RBA could cut rates again as soon as August 12, with the Australian Bureau of Statistics' all-important quarterly consumer price index print on Wednesday the potential green-light the central bank board needs to lower the cash rate to 3.6 per cent. Westpac senior economist Pat Bustamante expects trimmed mean inflation - which is the RBA's preferred measure - to come in at 2.7 per cent over the 12 months to June. That is 0.1 per cent higher than RBA staff economists predicted in their May Statement on Monetary Policy. But Mr Bustamante said that shouldn't stop the board from cutting, given the CPI is a lagging indicator and more forward-looking indicators of inflation, such as the labour market and private demand, have softened recently. Westpac expects the data to show a pick-up in the housing costs component, which includes electricity, accelerated in the quarter, as government energy rebates roll off. "Where we differ from the Reserve Bank is on the unit labour cost story," Mr Bustamante told AAP. Governor Michele Bullock cited concerns over weak productivity growth, which despite a gradual easing in the jobs market, could contribute to higher labour costs and flow through to inflation. But inflation has eased regardless. That is because much of Australia's weak productivity performance has been driven by the mining and non-market sectors, whereas the market sector excluding mining has been running at 0.8 per cent per year, closer to the long run average, Mr Bustamante said. "We're not as concerned as the RBA because a lot of the lower productivity outcome has been driven by sectors that don't flow into the CPI."
West Australian
7 days ago
- Business
- West Australian
Lucky Country era ending as commodity prices set to tumble
The country's living standards are tipped to fall over the next decade as ailing mining royalties and sluggish productivity smashes every Australian. Analysis by Westpac senior economist Pat Bustamante found mining delivered more than 50 per cent of the gains in Australians' living standards for the two decades until 2020. But this will come to an end as falling commodity prices and a lack of investment from the miners themselves means Australia will no longer be the 'Lucky Country.' 'Without change, Australians are in for a period of anaemic growth in living standards over the next decade,' Mr Bustamante wrote in an economic note. 'This will cost the average Australian $75,000 in income over the next decade.' While living standards is not a direct measurement of how much every Aussie pockets, it does give an indication of the income available to every country's resident by dividing total income by total people. Mr Bustamante said the contribution mining had made to Australians' living standards had been primarily driven by rising export prices with iron ore which soared in recent decades. But Westpac says the price of iron ore which is around $US103 a tonne today will slide to $US84 by 2027. 'And while we don't all 'work in the industry', we benefit indirectly from the demand for ancillary services, the investment undertaken by the industry, including in infrastructure like roads and ports, and the tax paid by the industry,' he said. 'Indeed, a large reason why the federal government and the mining states have been able to provide cost of living support, and increase the scope of public services, without becoming heavily indebted is because of the windfalls provided by the mining industry.' But Westpac warns mining investment 'stalled' in post 2008 and another commodities super cycle is unlikely to occur. Despite the warning, Mr Bustamante said Australia could offset the falling commodity prices if there is an uptick in productivity. 'Even without the 'free kick' from mineral export prices, productivity and growth in living standards can be put on a sound trajectory,' he said. 'But this requires changes in business practices, policy and culture, which will allow us to benefit from the technological advances already happening and in train.' Treasurer Jim Chalmers has identified improving productivity as a major focus for the Albanese government's second term. Mr Chalmers will host an economic reform roundtable on August 19 to 21 to look at improving productivity, enhancing economic resilience and strengthening budget sustainability.
Perth Now
7 days ago
- Business
- Perth Now
Why your living standards will fall by $75k
The country's living standards are tipped to fall over the next decade as ailing mining royalties and sluggish productivity smashes every Australian. Analysis by Westpac senior economist Pat Bustamante found mining delivered more than 50 per cent of the gains in Australians' living standards for the two decades until 2020. But this will come to an end as falling commodity prices and a lack of investment from the miners themselves means Australia will no longer be the 'Lucky Country.' Australia's living standards per person is tipped to fall by $75,000 over the next decade. NewsWire / John Appleyard Credit: News Corp Australia 'Without change, Australians are in for a period of anaemic growth in living standards over the next decade,' Mr Bustamante wrote in an economic note. 'This will cost the average Australian $75,000 in income over the next decade.' While living standards is not a direct measurement of how much every Aussie pockets, it does give an indication of the income available to every country's resident by dividing total income by total people. Mr Bustamante said the contribution mining had made to Australians' living standards had been primarily driven by rising export prices with iron ore which soared in recent decades. But Westpac says the price of iron ore which is around $US103 a tonne today will slide to $US84 by 2027. Iron ore prices are unlikely to boost Australia's living standards. Picture by: Rebecca Le May Credit: NCA NewsWire 'And while we don't all 'work in the industry', we benefit indirectly from the demand for ancillary services, the investment undertaken by the industry, including in infrastructure like roads and ports, and the tax paid by the industry,' he said. 'Indeed, a large reason why the federal government and the mining states have been able to provide cost of living support, and increase the scope of public services, without becoming heavily indebted is because of the windfalls provided by the mining industry.' But Westpac warns mining investment 'stalled' in post 2008 and another commodities super cycle is unlikely to occur. Despite the warning, Mr Bustamante said Australia could offset the falling commodity prices if there is an uptick in productivity. 'Even without the 'free kick' from mineral export prices, productivity and growth in living standards can be put on a sound trajectory,' he said. 'But this requires changes in business practices, policy and culture, which will allow us to benefit from the technological advances already happening and in train.' Treasurer Jim Chalmers has identified improving productivity as a major focus for the Albanese government's second term. Mr Chalmers will host an economic reform roundtable on August 19 to 21 to look at improving productivity, enhancing economic resilience and strengthening budget sustainability.
West Australian
23-07-2025
- Business
- West Australian
Aussies set to cop $75k income hit as mining gravy train ends and living standards plateau: Westpac
Mining delivered more than 50 per cent of the gains in Australian living standards over the two decades to 2020, according to Westpac, but the big four bank warns the gravy train is coming to an end. Analysis from Westpac senior economist Pat Bustamante has found weak net export growth and stalled mining investment is set to cost the average Australian $75,000 of income over the next decade. 'The mining industry accounts for less than 2 per cent of total employment or hours worked, and less than 15 percent of total output, across the Australian economy,' Mr Bustamante said. 'Yet, in the two decades to 2020, the mining industry delivered almost 55 per cent of the growth in our living standards.' Mr Bustamante said the contribution mining made to Australia's living standards was predominantly driven by higher export prices for key commodities, like iron ore, and an investment boom to bring massive projects online. 'Indeed, a large reason why the Federal government and the mining states have been able to provide cost of living support, and increase the scope of public services, without becoming heavily indebted is because of the windfalls provided by the mining industry,' he said. But the Westpac economist said mining investment has 'stalled' post the Global Financial Crisis of 2008 and strong commodity price growth was unlikely to continue. 'The economic landscape going forward will be very different. The dividend from higher commodity prices is likely to be a thing of the past as key commodity export prices ease,' Mr Bustamante. 'We have iron ore falling from around US$103 per tonne today to US$84/t over the March quarter 2027, for example.' Australia derives the bulk of its mineral wealth from iron ore, with more than $100 billion of export income produced each year. Local and international banks have been bearish about the long-term outlook of iron ore as China's steel demand peaks and new supply sources begin to emerge in Africa. Mr Bustamante said Australian living standards are projected to move sideways between 2022 and 2030, which would be 'the longest period (of no growth) on record'. 'Compared to the scenario where per capita living standards grows at the 40-year average rate of around 2.0 per a year, income will be around $75,000 lower per capita over the next decade in today's dollars compared to the status quo — that's around $300,000 for a household of four,' he said. 'The good news is that it does not have to be this way. Faster productivity growth can be an offset. Opportunities are emerging and we need to be well equipped to exploit these.' Mr Bustamante pointed to artificial intelligence as a potential opportunity, but implied more would need to be done to bridge the gap. 'The International Monetary Fund recently estimated that in nations that are well positioned to benefit from AI, its widespread adoption could boost productivity growth by 0.9 to 1.5 percentage points a year.' The Westpac research comes as Federal Treasurer Jim Chalmers prepares to host a three-day policy summit next month centred around productivity. The Business of Council of Australia is leading a cohort of 28 businesses and industry groups at the economic roundtable.
Scottish Sun
10-07-2025
- Automotive
- Scottish Sun
Glamorous TikToker Bianca Bustamante is new Formula E star who is branded ‘gorgeous' by her legion of fans
Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) BIANCA BUSTAMANTE is used to taking motorsport fans' breath away at breakneck speed when she's on the racetrack. But she also regularly does so on her Instagram and TikTok pages, which she has over 1.7 and 1.5 million followers on respectively. Sign up for Scottish Sun newsletter Sign up 7 Bianca Bustamante is a 20-year-old racecar drive set to take over Formula E Credit: GETTY 7 The Filipino has caught the eye of many racing enthusiasts with her driving style Credit: GETTY 7 Bustamante also lives an incredibly glamorous lifestyle away from the track Credit: GETTY 7 The Filipino is a regular attendee of swanky soirees and documents her ongoings on Instagram and TikTok Credit: GETTY The Filipino prospect has been making her way up the racecar ranks over the last three years. Bustamante, 20, has documented near enough every moment of her ongoing journey on her Instagram and TikTok accounts. And she's also wowed her growing audience with just as many photos and videos of her day-to-day life and appearances at plush events as she has race posts. A recent post including a series of selfies of her travelling first class was bombarded with comments about how radiant she looked. One of her followers commented: "OMG so gorgeous." Another said: You're a stunning girl." And another said: "You're blessed, girl." One merely remarked: "Damn." JOIN SUN VEGAS: GET £50 BONUS 7 Bianca Bustamante is as savvy with her dress sense as she is with her driving skills Credit: INSTAGRAM@RACERBIA 7 Bustamante has the potential to be one of the biggest names in all of motorsport Credit: CBR MEDIA Bustamante's motorsport journey really got into gear in January 2022 when she drove in the W Series test in Arizona with scores of other prospects. That led to her competing in the 2022 W Series season, which she ended in 15th place. F1 Bianca Bustamante She then started competing in Formula 4 before joining the all-female F1 Academy series with Prema Racing. Her impressive drives caught the eye of McLaren, who in October 2023, signed her to their Driver development programme. Bustamante also had a brief stint in Italian F4 with Art Grand Prix. Her transition to Formula E began in October 2024 when it was announced she'd be part of pre-season testing for McLaren's Formula E Women's Team for the 2024-25 season. And just last month, she was snapped as a development driver by Cupra Kiro. Bustamante will be in action at the E-Prix at Tempelhofer Feld in Berlin this coming weekend. And to say she's excited by the race would be an understatement. Bustamante wrote on her Instagram: "Such a surreal moment. I still can't believe I'll have this opportunity in 2025."
