Fed: World recession worse than thought: Treasury

AAP General News (Australia)
02-05-2009
Fed: World recession worse than thought: Treasury

CANBERRA, Feb 5 AAP - The global recession is forecast to be longer and deeper than
previously expected, a Senate inquiry has been told.

Treasury officials on Thursday explained the rationale of the $42 billion stimulus
package announced by the government, which is aimed at countering the global recession.

Treasury official David Gruen said the global recession was worse than previously forecast,
and as a result the package was developed to support demand over the next couple of years.

"Australia is suffering from insufficient aggregate …