Kevin Rudd seizes on GDP growth figures, warns of recession if Tony Abbott elected

Updated

Prime Minister Kevin Rudd has seized on the latest GDP growth figures as proof of his economic credentials, while ramping up his attack on Tony Abbott, warning the Coalition's "massive cuts" will send Australia into recession.

Today's national accounts show gross domestic product grew by 0.6 per cent in the March quarter, slightly higher than the 0.5 per cent most economists had predicted.

It takes the annual rate of GDP growth to 2.6 per cent, which is well below the long-term average.

However, Mr Rudd has again pointed to international comparisons to show the Australian economy has been strong under Labor's stewardship.

"As of this year, since we came to office in 2007, the Australian economy is 15 per cent bigger than it was," he said.

"I draw to your attention the fact that the British economy has shrunk 3 per cent over that time.

"Therefore, the economic credentials of this nation run by this Government over this period of time are strong."

Mr Rudd said much of the growth in the three months to June was due to investment in the public sector - something he warned was a "fundamental part" of bolstering the Australian economy.

"Therefore, pulling the plug on public investment prematurely by massive cuts places continued growth at risk in the Australian economy," he said.

He warned that was exactly what the Opposition Leader was planning to do.

"Most of all, I fear an Australian economy which through Mr Abbott's massive cuts would risk triggering the economy into recession with huge hits on jobs and huge hits on growth," he aded.

"I underline the fact through the data that comes out through the national accounts today. We are in very fragile global economic circumstances, very fragile indeed."

Rudd wants guarantee cuts won't hurt economy

Mr Rudd also issued another challenge to his opponent regarding the release of the Coalition's costings and savings.

"Given that Mr Abbott has kept the details of his massive cuts a secret throughout this election campaign, my question for Mr Abbott is to guarantee that his massive cuts will not hurt the economy, not hurt jobs and not risk triggering the economy into recession," he said.

"It is a very direct question of Mr Abbott."

Mr Abbott has hit back at the Prime Minister saying it was a "desperate scare".

"This is, if you like version two of the 'there are all these nasty cuts coming'," he told Macquarie Radio 2GB.

"We've said there'll be some savings.

"Very soon because we're on the verge of having released the last of our policies, Joe [Hockey] and Andrew [Robb] will be in a position to say these are the final list of spends, this is the final list of saves.

"I think the Australian people will be very reassured that we've got our priorities right."

Coalition's final costings expected to be released tomorrow

Earlier, the Opposition Leader had indicated that the Coalition's final figures would be released tomorrow.

Releasing the information tomorrow means it will be elude attack via negative Labor advertising, since the election ad broadcast blackout begins at midnight tonight.

Treasurer Chris Bowen has released updated figures from the departments of Treasury and Finance confirming Labor's cost estimates of its policies.

He says the government has now complied with the Charter of Budget Honesty - unlike the Coalition.

"Here we are days before the election, the election advertising blackout comes into force tonight, and we still have not seen the costings of the opposition," he said.

"They say they've submitted 200 policies to the parliamentary budget office - we've seen none of that documentation."

Last week, the Coalition released what it has described as "the bulk" of planned budget measures, revealing an extra $13 billion in savings measures, mostly found through scrapping measures associated with the mining tax (MRRT).

The new announcements take the Opposition's cuts to $31 billion over four years.

Mr Abbott has consistently rejected Labor's claim that he plans to slash more than double that from the budget.

Topics: federal-elections, elections, government-and-politics, rudd-kevin, economic-trends, business-economics-and-finance, australia

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