Bilan
5th November 2008, 01:28
The government has slashed economic growth and budget surplus forecasts due to the global financial crisis, and predicted a rising jobless rate.
"The global financial crisis has smashed a $40 billion hole in the budget," Treasurer Wayne Swan told a news conference. "This is yet another dramatic reminder that we are not immune from the impact of the global financial crisis."
Swan said the budget surplus for the year to end-June 2009 was now projected to be just $5.4 billion in 2008/09, down from a forecast of $21.7 billion in the May budget.
The mid-year review of budget forecasts said economic growth would slow to 2.0 percent in the year to end-June 2009 due to the global downturn, down from 2.75 percent forecast in the May 13 budget. Growth for 2009/10 was revised to 2.25 percent, compared to a budget forecast of 3.0 percent.
Employment growth was also forecast to slow, with the unemployment rate to climb to 5.0 percent on a year average by mid-2009, from near 30 year lows around 4.3 percent in the September quarter. The jobless rate would hit 5.75 percent by mid-2010.
The downward revisions come despite Australia's central bank aggressively cutting interest rates by 2 percentage points since September. The government also announced a $10.4 billion stimulus package last month, aimed at cushioning the economy from the global downturn.
Australia's economy is in its 17th year of economic expansion, fuelled in part by China's demand for Australia's resource exports.
(http://money.ninemsn.com.au/article.aspx?id=660469&rss=yes)
Source (http://money.ninemsn.com.au/article.aspx?id=660469&rss=yes)
"The global financial crisis has smashed a $40 billion hole in the budget," Treasurer Wayne Swan told a news conference. "This is yet another dramatic reminder that we are not immune from the impact of the global financial crisis."
Swan said the budget surplus for the year to end-June 2009 was now projected to be just $5.4 billion in 2008/09, down from a forecast of $21.7 billion in the May budget.
The mid-year review of budget forecasts said economic growth would slow to 2.0 percent in the year to end-June 2009 due to the global downturn, down from 2.75 percent forecast in the May 13 budget. Growth for 2009/10 was revised to 2.25 percent, compared to a budget forecast of 3.0 percent.
Employment growth was also forecast to slow, with the unemployment rate to climb to 5.0 percent on a year average by mid-2009, from near 30 year lows around 4.3 percent in the September quarter. The jobless rate would hit 5.75 percent by mid-2010.
The downward revisions come despite Australia's central bank aggressively cutting interest rates by 2 percentage points since September. The government also announced a $10.4 billion stimulus package last month, aimed at cushioning the economy from the global downturn.
Australia's economy is in its 17th year of economic expansion, fuelled in part by China's demand for Australia's resource exports.
(http://money.ninemsn.com.au/article.aspx?id=660469&rss=yes)
Source (http://money.ninemsn.com.au/article.aspx?id=660469&rss=yes)