# Chalmers Urges 'Middle Powers' to Cooperate on Economic Security Amid Global Shocks

> Australian Treasurer Jim Chalmers stated on October 25, 2026, that Australia and its “middle power” allies must collaborate to prevent their economies from being “hostage” to global events, emphasizing strengthened supply chains and economic security.

By PrimaryBrief newsroom · Published 2026-10-25T01:15:02.610654Z
Canonical: https://primarybrief.com/article/chalmers-urges-middle-powers-to-cooperate-on-economic-security-amid-global-shocks-ae9ec32e

Australian Treasurer Jim Chalmers declared on October 25, 2026, that Australia and its allied "middle powers" must unite to safeguard their economies from global instability, specifically advocating for robust supply chains and enhanced economic security [11]. This initiative matters to readers as it outlines Australia's strategy to navigate current international economic challenges, including geopolitical conflicts, and suggests future shifts in global trade and policy that could impact consumers and industries worldwide.

## What the Records Show

Treasurer Jim Chalmers told the Financial Times on October 25, 2026, that geopolitical shocks, including the wars in Iran and Ukraine, demonstrate the critical role of economic security for domestic consumers [11]. He emphasized, "there is important work that we can do together as middle powers to strengthen our supply chains, make them more robust and resilient and strengthen our economic security as a consequence" [11]. This stance aligns with the 2026 Intergenerational Report (IGR), released on September 21, 2026, which identified "geopolitical fragmentation" as one of six major transitions for Australia's economy over the next four decades [5][20].

In a tangible step towards this goal, Australia and Japan signed a Memorandum of Understanding on October 5, 2026. This agreement established an annual finance ministers' dialogue to deepen cooperation on financial and economic policy, with a focus on economic security and resilient supply chains, particularly in critical minerals and the defense industry [4][13][14].

Chalmers has consistently criticized the US-Iran war, labeling it an "economic disaster." He attributes rising global inflation, higher interest rates, and suppressed global growth to the conflict [6][7][8][18]. During the G20 finance ministers and central bank governors meeting in Bangkok in October 2026, he called for an end to Middle East conflicts and the reopening of the Strait of Hormuz to support the global economy [3][12]. Domestically, Chalmers warned on October 23, 2026, that the Australian Treasury is revising its economic forecasts for December's mid-year budget update. These revisions anticipate softer economic growth and an increase in unemployment, primarily due to persistent inflation and elevated interest rates [1][9][10][15][16][17].

## Timeline

On September 21, 2026, Treasurer Jim Chalmers released the 2026 Intergenerational Report, which cited "geopolitical fragmentation" as a significant challenge for Australia's economic future [5][20]. By October 3, 2026, Chalmers publicly described the US-Iran war as an "economic disaster" [18]. Two days later, on October 5, 2026, Australia and Japan formalized an annual finance ministers' dialogue through a memorandum of understanding, aimed at bolstering economic security and supply chain resilience [4][13][14]. Mid-month, on October 15, 2026, Chalmers used the G20 finance ministers' meeting in Bangkok to advocate for de-escalation in the Middle East and the reopening of the Strait of Hormuz [3][12]. More recently, on October 23, 2026, he foreshadowed an update to Australia's economic forecasts, predicting slower growth and higher unemployment [1][9][10][15][16][17]. His latest comments on October 25, 2026, called for "middle powers" to collaborate on economic security to avoid being "hostage" to global events [11].

## What Changed and For Whom

For Australia, a formal framework for economic security cooperation with Japan signals a strategic shift toward strengthening national resilience and diversified supply chains [4][13][14]. For Australian households and businesses, Chalmers' warnings of softer economic growth and rising unemployment suggest a more challenging period ahead due to persistent inflationary pressures and high interest rates [1][9][10]. Globally, Chalmers' consistent commentary at international forums, like the G20, highlights the perceived impact of geopolitical conflicts, such as the US-Iran war, on worldwide inflation and borrowing costs [3][6][7][8][12][18].

## What the Subject Has Said Publicly

Treasurer Jim Chalmers has repeatedly addressed the economic implications of global events. On October 25, 2026, he stated that "there is important work that we can do together as middle powers to strengthen our supply chains, make them more robust and resilient and strengthen our economic security as a consequence" [11]. He has consistently referred to the US-Iran war as an "economic disaster," attributing it to increased global inflation and borrowing costs [6][7][8][18]. Regarding Australia's domestic outlook, Chalmers noted that "higher interest rates and higher inflation are likely to mean softer growth and slightly higher unemployment" [9][10].

## What We Could Not Confirm

PrimaryBrief could not confirm the specific details or nature of the "US-Israel war on Iran" or "US war with Iran" that Chalmers referenced, beyond its stated economic impact [3][6]. The precise mechanisms and scope of coordination among "middle powers" to strengthen supply chains and economic security, beyond the newly established Japan-Australia dialogue, also remain unconfirmed [4][11][13].

## Evidence cited
1. (October 23 2026) Clip 10. Jim Chalmers has warned of weaker Australian economic growth and higher unemployment as households face persistent inflation and interest-rate pressure. Meanwhile, NAB plans to cut up to 2500 roles, and Snowy 2.0's potential cost has climbed to $25 billion. Sponsored by the Australian Book and Language Studio Bookstore: https://abls.com.au/book-store/ This video examines three developments shaping Australia's economic outlook: • Chalmers' warning ahead of the midyear b — https://youtube.com/
2. (September 09 2026) The Albanese Government's second Intergenerational Report examines Australia's economic trajectory and the transitions that will define the next 40 years. It's all about identifying the big opportunities and challenges in our economy so we can secure prosperity and higher living standards for current and future generations. This report finds that the pace of change is accelerating – across artificial intelligence, geopolitics, energy, population ageing and industrial composit (treasury.gov.au) — https://treasury.gov.au/
3. (October 15 2026) Officials meet in Thailand as conflict drives energy prices higher and casts uncertainty over global economy. ... The G20 finance ministers and central bank governors are gathering in Bangkok, Thailand, on Thursday amid an uncertain global outlook shaped by the US-Israel war on Iran. The meetings are being held in conjunction with the annual meetings of the International Monetary Fund (IMF) and the World Bank, taking place in the Thai capital from October 12 to October 18.
...
 (Al Jazeera) — https://aljazeera.com/
4. (October 05 2026) Japanese Finance Minister Satsuki Katayama (right) and Australian Treasurer Jim Chalmers sign a memorandum. Reuters. Published: 8:45pm, 5 Oct 2026. Japan and Australia have agreed to establish an annual finance ministers' dialogue aimed at deepening cooperation in financial and economic policy, as well as strengthening bilateral collaboration on economic security. Under a memorandum of understanding signed on Monday that is effective for five years, the two countries' finan (South China Morning Post) — https://scmp.com/
5. (September 21 2026) Jim Chalmers, in a speech at the Australian National University to coincide with the release of the analysis, said “this intergenerational report illuminates the road ahead”. Pedestrians exit Martin Place train station in Sydney, Australia. More Australians to live into their 90s as life expectancy forecast to rise over coming decades. Read more. “No previous IGR has contended with global challenges ... This year's report also included a section of six “major transitions” for (The Guardian) — https://theguardian.com/
6. (October 04 2026) Australian Treasurer Jim Chalmers called the US-Iran war an economic disaster, blaming it for higher global inflation and interest rates. He said rising bond yields will add billions of dollars to the cost of servicing public debt, but he does not expect a recession at home. Australia's treasurer says the Iran war is a disaster for the economy, with the bill arriving through petrol prices, interest rates and the cost of the nation's debt.
...
(October 04 2026) Jim Chalmers desc (PrimeXBT) — https://primexbt.com/
7. (October 04 2026) Treasurer Jim Chalmers labeled the US war with Iran an economic disaster, saying the Middle East conflict is putting "very substantial" pressure on inflation and lifting rates worldwide. ... He said spending growth has cooled and argued budgets aren't the main force behind prices, while warning higher global bond yields will add "some billions of dollars" to Australia's debt bill. ... On ABC's Insiders on Sunday he said, "Whatever the reasons were for going in, from an economic (briefs.co) — https://briefs.co/
8. (October 04 2026) According to Jin10, Australia's Treasurer Jim Chalmers said the U.S. war against Iran has become an economic disaster, pushing up global inflation and borrowing costs, and warned that the conflict is. ... He said the longer the conflict drags on, the greater the impact on the global economy and Australia's economy. (Binance News) — https://binance.com/
9. (October 23 2026) Jim Chalmers warns of weaker economic growth and rising unemployment as inflation pressures intensify. AUSTRALIA. Jim Chalmers warns of weaker economic growth and rising unemployment as inflation pressures intensify. 23 October, 2026. Australian households face further financial uncertainty as Treasurer Jim Chalmers prepares to revise the nation's economic forecasts. Jim Chalmers warns of weaker economic growth and rising unemployment as inflation pressures intensify, warning t (THE HELLENIC AUSTRALIAN INSIGHT) — https://tanea.com.au/
10. (October 22 2026) SYDNEY, Oct 22 (Reuters) - Australian Treasurer Jim Chalmers will warn of softer economic growth and higher unemployment as interest rates remain high and inflation proves stubborn, according to excerpts of a speech that was reviewed by Reuters on Th... ... Australia's treasurer warns of softer growth, higher unemployment. By Thomson Reuters Oct 22, 2026 | 6:32 AM. SYDNEY, Oct 22 (Reuters) – Australian Treasurer Jim Chalmers will warn of softer economic growth and higher unem (WSAU News/Talk 550 AM · 99.9 FM) — https://wsau.com/
11. (October 25 2026) Australia and its “middle power” allies must work together to avoid their economies being taken “hostage” by global events, the country's finance minister has said. Jim Chalmers, who has served as Australia's treasurer since 2022, told the FT that geopolitical shocks such as the wars in Iran and Ukraine showed how economic security could pay off for consumers at home. ... “Countries like ours and economies like ours understand that we are in part hostage to decisions taken in W (Financial Times) — https://ft.com/
12. (October 15 2026) Economic Policy

 ... Talks centered on the US-Israel war on Iran, which has driven oil above $100 a barrel for eight months, raising global energy costs, inflation and interest rates. US Treasury Secretary Scott Bessent skipped the meetings; the G20 session ended without a joint statement or chair's summary. Australia's Treasurer Jim Chalmers warned the war is driving up global fuel prices, inflation and interest rates, and called for reopening the Strait of Hormuz. Japan was  (CIVL) — https://civl.com/
13. (October 06 2026) Finance Minister Satsuki Katayama and Australian Treasurer Jim Chalmers have established a new dialogue framework to enhance economic-security cooperation. The two nations will share information on investment trends in their respective countries and discuss supply chains, including those in the defense industry, according to a memorandum of understanding signed by Katayama and Chalmers in Tokyo on Monday. “Japan will further strengthen its partnership with Australia and contrib (The Japan Times) — https://japantimes.co.jp/
14. (October 05, 2026 at 09:30 pm EDT) Australia and Japan signed a memorandum of cooperation establishing an annual Finance Ministerial Dialogue aimed at strengthening economic security and resilience in the Indo-Pacific. The... -October 05, 2026 at 09:30 pm EDT - MarketScreener. (MarketScreener) — https://marketscreener.com/
15. (October 22 2026) Australian Treasurer Jim Chalmers says the economy is likely to grow more slowly and unemployment is expected to rise as persistent inflation and higher interest rates put pressure on households and businesses. Treasury is revising its forecasts for the government's mid-year budget update, due in December. In extracts of a speech scheduled for Friday, 23 October, Chalmers said higher inflation was putting people under pressure and tighter monetary policy was weighing on domesti (Australia By Aussie) — https://australiabyaussie.com/
16. (October 23 2026) Treasurer Jim Chalmers will tell the Citi A50 Economic Forum in Sydney on Friday that Treasury is reworking its numbers for December's mid-year budget update, and that the revisions point to softer growth and slightly higher unemployment, according to speech excerpts seen by Reuters.
... (HRD Australia) — https://hcamag.com/
17. (October 22 2026) Jim Chalmers has revealed December's mid-year budget update will project weaker growth and higher unemployment, as economists warn of a difficult six months ahead for the Australian economy. Two days after a senior Reserve Bank official foreshadowed the potential for another interest rate hike in under two weeks' time, the treasurer in a speech on ...
... (EIA.MEDIA) — https://eia.media/
18. (October 03 2026) Investing.com -- Australian Treasurer Jim Chalmers said the U.S.-Iran war has been an economic "disaster," blaming the conflict for higher inflation and borrowing costs and warning that it is weighing on global growth, Bloomberg reported. ... "Whatever the reasons were for going in, from an economic point of view the war in the Middle East has been a disaster," Chalmers told ABC News' Insiders program on Sunday. (Investing.com) — https://investing.com/
19. (October 05 2026) Japan's Ministry of Finance and Australia's Treasury have put a fixed structure around their finance ministers' talks. Satsuki Katayama, Japan's finance minister, and Jim Chalmers, Australia's Treasurer, signed the Memorandum of Cooperation in Tokyo on 5 October 2026, and the inaugural dialogue followed the same day. Tokyo Brief earlier reported the signing of the pact. The memorandum's text adds the machinery. How the dialogue works. Katayama and Chalmers will co-chair the Fin (Tokyo Brief) — https://tokyobrief.com/
20. (September 21 2026) The Seventh Intergenerational Report IGR was released on 21 September 2026 by our current Treasurer Jim Chalmers. It projects the outlook for the Australian economy and the Government's budget to 2065–66. These projections help inform and improve public policy settings to better position Australia for the next 40 years. This IGR includes a new section on the major transitions shaping Australia's economy: The artificial intelligence revolution. Geopolitical fragmentation. Ener (spectrumanalysis.com.au) — https://spectrumanalysis.com.au/
21. (September 18 2026) Every five years, Treasury holds up a mirror to Australia's economic future and asks a confronting question: can the country afford to grow old? The sixth Intergenerational Report (IGR), released on 21 September 2026, delivers an answer that reshapes how ordinary Australians should think about their own retirement. The headline is deceptively reassuring - the Age Pension is becoming more affordable for the Commonwealth. But dig into the numbers and a very different message em (financedirectory.net.au) — https://financedirectory.net.au/
22. (September 21 2026) The Hon Dr Jim Chalmers MP, Treasurer of Australia, today launched the 2026 Intergenerational Report at The Australian National University (ANU) as part of the Australia and the World Annual Lecture series, revealing the latest projections for what Australia could look like in 2066. Held at the recently restored University House, the event brought together members of the ANU community and distinguished guests to hear from the Treasurer on the findings of the seventh report. T (anu.edu.au) — https://anu.edu.au/
23. (September 21 2026) In an Intergenerational Report published on Monday, the Treasury department identified AI, geopolitical fragmentation, the energy transition, ageing population and a shift to a service-based economy as the five most consequential transformations facing the country's economic outlook over the next four decades. It now expects population growth to slow to 0.9 per cent a year over the next four decades as fertility rates decline and net overseas migration – the difference betwee (channelnewsasia.com) — https://channelnewsasia.com/
24. (September 21 2026) On Monday, Treasurer Jim Chalmers released the latest Intergenerational Report, predicting Australia will experience four decades of "remarkable change" driven by artificial intelligence, an ageing population, and energy transition. The Australian Treasury identifies five major transitions expected to reshape the economy, including geopolitical fragmentation and the AI revolution, as annual growth slows to 2% over the next 40 years from 3% previously. Deaths are projected to  (ground.news) — https://ground.news/
25. (September 22 2026) The 2026 Intergenerational Report explores the forces that are expected to reshape Australia's economy over the next 40 years, identifying five key factors: AI, geopolitical fragmentation, the ageing population, the energy transition, and the changing industrial base. The document outlines how the 'AI revolution' will power 'the biggest economic transformation of our lifetime,' while society grapples with demographic change as deaths outnumber births for the first time. “No p (employmenthero.com) — https://employmenthero.com/