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An innovative economy requires an innovative government – The Hill Times

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Government’s job is to empower rapid innovation in the private sector, not control it. Promote a new wave of digital-first ADMs and DMs across departments and prioritize candidates who have worked in high growth SMEs, and who value competition and competitiveness in everything they do, writes ISG Senator Colin Deacon. The Hill Times photograph by Andrew Meade

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Fed official says U.S. economy 'plateauing' due to spread of COVID-19 and lack of fiscal help – The Globe and Mail

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Philadelphia Federal Reserve Bank President Patrick Harker speaks in Newark, Del., on April 27, 2013, when he was serving as president of the University of Delaware.

The Associated Press

U.S. economic growth is moderating as the coronavirus spreads and fiscal help fades, and some workers whose jobs are permanently eliminated will face an especially tough recovery, Philadelphia Federal Reserve Bank President Patrick Harker said on Wednesday.

Harker said he is expecting “moderate growth for the rest of this year and the first quarter of 2021” and for the economy to stay below pre-pandemic levels.

“Indeed, we are currently seeing signs of plateauing in the economy,” Harker said during remarks prepared for a virtual discussion. “That’s attributable both to COVID-19′s continued circulation and to the evaporation of fiscal support.”

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The policymaker forecasts that growth will pick up in the second half of next year if there is a vaccine widely available by next spring or summer. Harker said more fiscal support is needed to get the economy to that point and to support low-income households.

He also repeated his view that many of the jobs lost during the pandemic will not return as companies use technology to reduce staff. He gave the examples of toll workers who were laid off and jobs at meat packing plants that are being automated.

Speaking about the actions the Fed took to support the economy during the pandemic, Harker said he thought the central bank’s emergency lending programs should be extended beyond year end.

The facilities, which support lending to small and medium sized businesses, state and local governments and backstop the corporate bond market, are set to end by Dec. 31 after Treasury Secretary Steven Mnuchin asked the Fed to return unused funds.

“In my opinion, those facilities should stay open past the end of this year,” Harker said. “Until we get through this pandemic, the economy needs to be supported.”

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Australia bounces out of recession as economy grows 3.3% – OrilliaMatters

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WELLINGTON, New Zealand — Australia’s economy grew by 3.3% in the third quarter, rebounding from its first recession in nearly three decades as it recovered from pandemic-related shocks, according to figures released Wednesday.

Treasurer Josh Frydenberg told reporters the country still has a lot of ground to make up from the coronavirus downturn.

“Australia’s recession may be over, but Australia’s economic recovery is not,” he said.

Despite the latest quarterly rise, the economy contracted at a 3.8% annual pace. That’s after GDP fell by 0.3% in the first quarter and then by a record 7% in the second quarter.

“But the Australian economy has demonstrated its remarkable resilience and Australia is as well positioned as any other nation on Earth,” Frydenberg said. “Today’s national accounts represent a major step forward in Australia’s economic recovery.”

Before this year, Australia had managed to avoid a recession for 28 years. The economy grew even during the global financial crisis thanks to strong demand for Australia’s mineral exports and a robust domestic sector.

The better-than-expected figures were encouraging, economists said.

“The rebound in Q3 GDP reversed around 40% of the decline during the first half of the year and we expect output to return to pre-virus levels by mid-2021,” Ben Udy of Capital Economics said in a commentary.

Now on top of the pandemic, Australia is enduring a spate of rocky relations with China, its biggest trading partner.

Frydenberg said the situation with China is “very serious” but his government is focusing on striking deals with other countries in Asia and beyond.

“We have great produce, and we have great services, and we have great resource sectors, and I’m very optimistic about the opportunities for our exporters around the world,” he said.

Australia’s relationship with China worsened this week after a Chinese official tweeted a fake image of a grinning Australian soldier holding a bloodied knife to a child’s throat.

Australian Prime Minister Scott Morrison called the image “repugnant” and demanded an apology from the Chinese government. But China has not backed down.

The post took aim at alleged abuses by elite Australian soldiers during the conflict in Afghanistan.

Tensions have been growing this year since the Australian government called for an independent inquiry into the origins of the pandemic. China has imposed tariffs and other restrictions on a number of Australian exports.

Nick Perry, The Associated Press

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Australia bounces out of recession as economy grows 3.3% – Nanaimo News NOW

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“But the Australian economy has demonstrated its remarkable resilience and Australia is as well positioned as any other nation on Earth,” Frydenberg said. “Today’s national accounts represent a major step forward in Australia’s economic recovery.”

Before this year, Australia had managed to avoid a recession for 28 years. The economy grew even during the global financial crisis thanks to strong demand for Australia’s mineral exports and a robust domestic sector.

The better-than-expected figures were encouraging, economists said.

“The rebound in Q3 GDP reversed around 40% of the decline during the first half of the year and we expect output to return to pre-virus levels by mid-2021,” Ben Udy of Capital Economics said in a commentary.

Now on top of the pandemic, Australia is enduring a spate of rocky relations with China, its biggest trading partner.

Frydenberg said the situation with China is “very serious” but his government is focusing on striking deals with other countries in Asia and beyond.

“We have great produce, and we have great services, and we have great resource sectors, and I’m very optimistic about the opportunities for our exporters around the world,” he said.

Australia’s relationship with China worsened this week after a Chinese official tweeted a fake image of a grinning Australian soldier holding a bloodied knife to a child’s throat.

Australian Prime Minister Scott Morrison called the image “repugnant” and demanded an apology from the Chinese government. But China has not backed down.

The post took aim at alleged abuses by elite Australian soldiers during the conflict in Afghanistan.

Tensions have been growing this year since the Australian government called for an independent inquiry into the origins of the pandemic. China has imposed tariffs and other restrictions on a number of Australian exports.

Nick Perry, The Associated Press

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