13 May 2015
Australian budget projects larger deficit for 2015-16 than expected - ANZ
FXStreet (Bali) - Cherelle Murphy, Senior Economist at ANZ, notes that the Australian Budget announced on Tuesday projects a larger deficit for 2015-16 than previously expected, and a slower rate of improvement over the following three years.
Key Quotes
"We are comfortable with the economic assumptions underlying the budget near term, but see the risks to the medium-term forecasts as firmly to the downside as real GDP is projected to grow above trend, at 3½%, over the five years from 2017-18 to 2021-22."
"An ageing population and a lack of productivity-enhancing economic reform will constrain growth unless future budgets or economic developments help offset these."
Key Quotes
"We are comfortable with the economic assumptions underlying the budget near term, but see the risks to the medium-term forecasts as firmly to the downside as real GDP is projected to grow above trend, at 3½%, over the five years from 2017-18 to 2021-22."
"An ageing population and a lack of productivity-enhancing economic reform will constrain growth unless future budgets or economic developments help offset these."