Australia’s Federal Budget: 2016 GDP growth seen at +2.5%

The latest Australian Federal Budget forecasts 2016 GDP at +2.5%. Further insights are as under:

GDP growth f/cast +3.0% through 2019/20

2016/17 budget deficit f/cast A$37.1bln vs 33.7bln seen in Dec f/cast

2016/17 inflation at 2%, 2017/18 2.25%

2016/17 unemployment rate f/cast 5.5%

Govt projects to return budget to balance by 2020/21*

Govt committed to lowering deficit by cutting spending while keeping taxes low