Key to the upcoming budget, which will be released on the 25th of October, will be an intention and focus on local manufacturing.
Mr Albanese says a stronger local economy will be supported by a national reconstruction fund to support businesses. He says Australia has the capacity to be an international economic force and renewable energy superpower, particularly with innovation and technology.
"What we want is to lift Australia up in the race to the top, so we're competing on the basis of our quality, and what we can produce, our skills our smarts. And that is why the development, which is ubiquitous with new technology around the world, changes the basis of manufacturing in this country and changes the equation for how we can indeed have a future made in Australia. A high value, a high wage economy that works for people, not the other way around."
The International Monetary Fund issued a stark outlook for the global economy, claiming one-third of the world's economies are either in recession or risk soon going into recession.
While US President Joe Biden says a recession is unlikely for the country's economy, Mr Chalmers is not convinced.
He says the Australian economy must reflect global concerns, foreshadowing a responsible budget that is still committed to addressing the rising cost of living.
"We play the cards that we're dealt. We go into this with a lot going for us but we won't be completely spared another global downturn. The backdrop for this economy is a deteriorating global economy, high and rising inflation at home and persistent structural pressures on the budget. The best way to respond to that, best way to respond to uncertainty in the global economy is with a responsible budget at home. Our budget will provide responsible cost of living relief with an economic dividend. It will invest in the capacity of our economy, and it will begin to trim the waste and rorts that have been a feature of our economy for too long."
