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2 Aug 2013
Australian downgrades economic outlook, higher unemployment seen
FXstreet.com (Barcelona) - The Australian Treasurer Chris Bowen released the government’s economic statement today, projecting the 2013/2014 budget deficit at A$30.1 bln vs A$18 bln seen in May, as the economic outlook in the country deteriorates. Growth for 2013/14 is seen at 2.5% vs 2.75% in May, while maintains 3% for 2014/15.
On the unemployment rate, Australia revised the number higher to 6.25% by July 2014 vs. 5.75% seen in May. Meanwhile, a surplus of A$4.0 bln is expected in 2016 vs A$6.6bn seen in May. Growth was cuts for the period 2013/14 to 2.5% vs. 2.75% in May. In terms of net debt, it is expected to peak at 13% of GDP by 2014/2015. Australia also confirmed the new bank levy to start 2016, which is expected to raise A$733 mln. Terms of trade could go down by 5.75bp. China growth cut to 7.25% this year.
Australian Treasurer Bowen emphasized that Australia is undergoing an important economic transition
On the unemployment rate, Australia revised the number higher to 6.25% by July 2014 vs. 5.75% seen in May. Meanwhile, a surplus of A$4.0 bln is expected in 2016 vs A$6.6bn seen in May. Growth was cuts for the period 2013/14 to 2.5% vs. 2.75% in May. In terms of net debt, it is expected to peak at 13% of GDP by 2014/2015. Australia also confirmed the new bank levy to start 2016, which is expected to raise A$733 mln. Terms of trade could go down by 5.75bp. China growth cut to 7.25% this year.
Australian Treasurer Bowen emphasized that Australia is undergoing an important economic transition