The going is pretty good. On a broad level.
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The mid-year budget update for the ACT shows an economy on the mend, a deficit shrinking faster than expected, inflation trending below the national rate and stronger wage growth.
Chief Minister Andrew Barr has been able to deliver another budget update with a good headline.
But Mr Barr conceded on Thursday the biggest risk to the territory's economy was what the Reserve Bank did next on interest rates.
After nine cash rate rises in a row, the question is whether they will keep going in an effort to curb inflation.
"Should they go much further, I think they are risking effectively crashing the economy in order to save it from inflation. And that's a balancing act that is clearly very challenging," Mr Barr said.
But an improved budget bottom line is a bit academic when cost of living pressures are starting to bite. The Chief Minister acknowledged the government might have to do more to help out the most vulnerable.
Still, employment in the ACT is strong and Mr Barr is quick to issue the reminder that rising rates, while bad for generally younger people paying off their homes, is great news for the self-funded retirees who live off the money their savings generate.
MORE MID-YEAR A.C.T. BUDGET
The perception the government is failing to deliver on the services Canberrans want - a view being championed by the Opposition, with help from disappointing results in the recent reports on government services - is particularly harmful to the government.
Governments run into trouble with the public in times of economic crisis.
Mr Barr will likely need to place a bet that Canberra's resilience in the face of a possible national economic downturn will hold by the time he seeks a third term as Chief Minister in 2024.
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Jasper Lindell
Jasper Lindell joined The Canberra Times in 2018. He is a Legislative Assembly reporter, covering ACT politics and government. He also writes about development, transport, heritage, local history, literature and the arts, as well as contributing to the Times' Panorama magazine. He was previously a Sunday Canberra Times reporter.
Jasper Lindell joined The Canberra Times in 2018. He is a Legislative Assembly reporter, covering ACT politics and government. He also writes about development, transport, heritage, local history, literature and the arts, as well as contributing to the Times' Panorama magazine. He was previously a Sunday Canberra Times reporter.
