The figures indicate a worsening economy, but the government has sought to put a positive spin on the situation, saying the Australian economy is showing resilience.

Politics with Michelle Grattan: Mathias Cormann and Jim Chalmers on the mid-year budget update

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Politics with Michelle Grattan: Mathias Cormann and Jim Chalmers on the mid-year budget update

Politics with Michelle Grattan: Mathias Cormann and Jim Chalmers on the mid-year budget update

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