25 Jul 2009

Long, bumpy road seen ahead by Rudd

11:56 am on 25 July 2009

Prime Minister Kevin Rudd has warned of more economic pain ahead for Australia.

In a 6100-word essay published in The Sydney Morning Herald, Mr Rudd says the road to recovery will be long, tough and bumpy, with many twists and turns.

The ABC reports he warns that economic conditions facing many families will deteriorate even as growth returns.

Mr Rudd has warned that it will look like things are getting worse before they get better, with interest rates inevitably rising.

He says higher demand will potentially force up petrol and food prices and that unemployment will keep going up for as long as a year after growth returns.

The Prime Minister says the Federal Government will make difficult and unpopular decisions as it seeks to cut the Budget deficit in half by 2013.