Better budget bottom line, higher inflation on the way

17 Dec Better budget bottom line, higher inflation on the way

Treasury has updated its economic and fiscal forecasts for the next four years in its mid-year budget update.

BUDGET DEFICITS (PREVIOUS IN BRACKETS):

* 2025/26 – $36.8 billion ($42.2b)

* 2026/27 – $34.3b ($35.4b)

* 2027/28 – $36.2b ($27.1b)

* 2028/29 – $36b ($37b)

* Total – $143.3b ($151.7b)

GROSS DEBT:

* 2025/26 – $993b ($1022b)

* 2026/27 – $1069b ($1092b)

* 2027/28 – $1142b ($1161b)

* 2028/29 – $1213b ($1223b)

GDP GROWTH:

* 2025/26 – 2.25 per cent (2.25 per cent)

* 2026/27 – 2.25 per cent (2.5 per cent)

* 2027/28 – 2.5 per cent (2.75 per cent)

* 2028/29 – 2.75 per cent (2.75 per cent)

INFLATION:

* 2025/26 – 3.75 per cent (3 per cent)

* 2026/27 – 2.75 per cent (2.5 per cent)

* 2027/28 – 2.5 per cent (2.5 per cent)

* 2028/29 – 2.5 per cent (2.5 per cent)

WAGE GROWTH:

* 2025/26 – 3.25 per cent (3.25 per cent)

* 2026/27 – 3.25 per cent (3.25 per cent

* 2027/28 – 3.5 per cent (3.5 per cent)

* 2028/29 – 3.75 per cent (3.75 per cent)

UNEMPLOYMENT:

* 2025/26 – 4.5 per cent (4.25 per cent)

* 2026/27 – 4.5 per cent (4.25 per cent)

* 2027/28 – 4.25 per cent (4.25 per cent)

* 2028/29 – 4.25 per cent (4.25 per cent)

Jacob Shteyman
(Australian Associated Press)