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Australia to Get Budget Sweeteners as Government Trails in Polls

  • Unemployment forecast at 50-year low, wages at 10-year high
  • Economists see budget deficit narrowing on jobs, commodities
Updated on

Australia’s center-right government will offer sweeteners and highlight the strong outlook for the nation’s $1.6 trillion economy in its budget Tuesday, aiming to boost its prospects in upcoming elections.

Treasurer Josh Frydenberg foreshadowed budget estimates showing the jobless rate falling in the third quarter to 3.75%, the lowest level since the early 1970s, and staying at “historically low levels” over the forecast horizon. He predicted wages growth would respond to the tight labor market by climbing at the fastest pace in a decade, after having ended last year at a tepid 2.3%.