# Chalmers says global turmoil will force budget cuts but Australia should avoid recession

https://mins.news/en/item/85003

- The Guardian, 2026-10-04 01:41 UTC
- Economy
- Original: https://www.theguardian.com/business/2026/oct/04/chalmers-says-global-economic-turmoil-will-drive-budget-cuts-but-australia-should-avoid-recession

> Treasurer Jim Chalmers warned of “very substantial and intensifying” pressure on Australia’s federal budget as the prolonged Middle East conflict drives up costs and weighs on global growth. He said the government would seek further savings before its December fiscal update, but was not anticipating a recession, and blamed the private sector in part for inflationary pressure.