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Josh Frydenberg: Nation’s economy ‘in good shape’ to handle economic downturn

The Treasurer says the nation’s economy “is in good shape” to deal with an economic downturn, if one were to occur.

The Australian share market has fallen to its lowest level in 12 months, while stocks in wealth manager AMP plummeted nearly 25 per cent.

Federal Treasurer Josh Frydenberg tells Ross Greenwood shaky conditions on the global markets are playing out on Australian soil.

“There is some global volatility. There are some changes occurring in international markets which play out of course here at home.

“I’m talking about the trade tensions we’re seeing between US and China, the normalisation of US monetary policy.”

But the Treasurer says ” the Australian economy is in good shape”.

“The fundamentals are strong and the economic indicators indicate that we’ve seen economic growth throughout the year.

“The Australian economy is the envy of the world.”

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Mr Frydenberg also says Opposition Leader Bill Shorten’s proposed changes to negative gearing and capital gains tax is a “risk”.

“Our Triple-A credit rating is being put at risk by a Labor Party policy which their backbenchers and their frontbenchers couldn’t explain.

“I just think it’s a matter of time before Bill Shorten has a humiliating back down on this policy because he doesn’t understand it.”