Economics
Australia Cuts Forecasts for Wage Increases, Economic Growth and Budget Surplus
- Wages forecast slashed, but still higher than central bank’s
- Frydenberg relying on commodity windfall to balance the books
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Australia’s mid-year budget update showed economic reality is starting to bear down on the government’s finances.
Treasury lowered its forecast surplus for the 12 months through June 2020 to A$5 billion ($3.4 billion) from April’s budget estimate of A$7.1 billion as it scaled back estimated tax revenues, according to the Mid-Year Economic and Fiscal Outlook released in Canberra Monday. It also predicted narrower surpluses for the following three fiscal years.