<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>High </span><a href="http://9news.com.au/interest-rates" rel="" target="" title=""><span>interest rates</span></a><span> stemming from the </span><a href="http://9news.com.au/israel-iran-conflict" rel="" target="" title=""><span>Middle East crisis</span></a><span> are hitting the </span><a href="http://9news.com.au/new-south-wales" rel="" target="" title=""><span>NSW</span></a><span> economy harder than the rest of the country, the treasurer will declare, as he foreshadows "significantly" weaker growth.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But despite the gloomy outlook, Daniel Mookhey says the state will avoid recession due to investment in renewable energy projects.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In an address to the McKell Institute today, Mookhey will break from tradition to reveal key economic forecasts a month ahead of his June budget, warning of the impact from a prolonged conflict.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/sydney-news-woman-and-two-kids-found-dead-in-campbelltown/eacd6982-9c69-421e-a35b-12d052472649"><strong><span>Dad was allegedly planning murder of sons, wife for months</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Even if the war in the Middle East ended today, petrol prices are not falling tomorrow. Oil markets will take time to normalise. If they ever do," Mookhey will say in a signal the state believes the inflation crisis has a long way to run.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>He'll also declare economic growth forecasts have more than halved since December's mid-year update.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Instead of the NSW economy growing by the 2.5 per cent in 2026-2027 that we expected in December, the NSW Treasury expects the economy to grow by just 1 per cent in the year ahead," the treasurer will reveal.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/nsw-budget-treasurer-daniel-mookhey-reveals-why-high-rates-from-middle-east-crisis-will-hit-nsw-harder-than-other-states/12d583d2-2c09-42bb-88b8-ddc0af886430" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Attentive budget watchers will notice a slowdown more pronounced in NSW than elsewhere in the federation."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The simple reason, the treasurer will explain, is that higher inflation has led to the Reserve Bank hiking interest rates.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"But the more complicated explanation is this: higher interest rates hurt working Australians in every state, but they hurt working Australians more in this state," he will say.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/peter-hollingworth-death-former-governorgeneral-dies-at-the-age-of-91/1a6d93c2-fd9b-4cef-b02a-afbf4ac76635"><strong><span>Former governor-general Peter Hollingworth dies</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>A typical working family in Victoria borrows about $677,000, compared to an average NSW mortgage of $873,000.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"That is why NSW fares better when interest rates fall. And fares worse when they rise," Mookhey will say.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Next month's state budget is the last to be handed down before NSW voters go to an election in March next year, and the treasurer will use his speech to call on the Liberal Party to declare its support for net zero emissions</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"NSW is (and was) the first state to truly have grasped that reaching net zero is a sound economic strategy," he will say.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/doomsday-glacier-on-the-verge-of-collapse-antarctica/06937536-bcb5-4b77-84f9-511ffe296bc4"><strong><span>'Doomsday' glacier is on the verge of collapse</span></strong></a><strong><span> </span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The number of renewable energy projects now under construction ... explains why the NSW economy is set to avoid a recession.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"To campaign against NSW's net zero targets is to campaign for a NSW recession."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><em><strong><span>NEVER MISS A STORY: </span></strong></em><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><em><strong><span>Download the 9NEWS App here via </span></strong></em><a href="https://apps.apple.com/au/app/9news/id1010533727" rel="" target="" title=""><em><strong><span>Apple</span></strong></em></a><em><strong><span> and </span></strong></em><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" rel="" target="" title=""><em><strong><span>Google Play</span></strong></em></a><em></em></li><li><em><strong><span>Make 9News your preferred source on Google by </span></strong></em><a href="https://9.nine.com.au/8x987w" rel="" target="" title=""><em><strong><span>ticking this box here</span></strong></em></a><em></em></li><li><em><strong><span>Sign up to </span></strong></em><a href="https://login.nine.com.au/edm?client_id=nineatnine" rel="" target="" title=""><em><strong><span>our breaking newsletter here</span></strong></em></a><em></em></li></ul></div></div>