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The economic growth forecasts have been upgraded with conditions rebounding more quickly than anticipated as the virus was brought under control – at least for now. At the same time, the iron ore price is defying gravity.
The profile for output growth, which brings forward the timing of the reopening effect, is now: 2020/21, +0.75% (upgraded from -1.5%); 2021/22, 3.5% (moderated from 4.75%); 2022/23, 2.50% (lowered by 0.25%); and 2023/24, 2.75% (also lowered by 0.25%).
Westpac’s forecasts for output growth for this financial year and next are not greatly different from the Government, at 0.3% for 2020/21 (vs the 0.75%) and 4.1% for 2021/22 (vs the 3.5%).
Falling JobKeeper demand and booming iron ore prices offer $16 billion improvement to Federal Budget
Posted
ThuThursday 17
updated
ThuThursday 17
DecDecember 2020 at 5:04am
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Fewer people needing JobKeeper as well as booming iron ore export prices have delivered a $16 billion improvement to the Federal Budget s bottom line, but the Government is still on track for a record deficit.
Key points:
A record deficit is still expected at $198b, down from $214b forecast in October
The number of people on JobKeeper sits at 1.6 million, down from the 2.2 million expected
By Reuters Staff
3 Min Read
SYDNEY, Dec 16 (Reuters) - The Australian and New Zealand dollars held near multi-year highs on Wednesday as the prospect of a vaccine-led global economic recovery underpinned risk assets and commodity prices.
The Aussie stood at $0.7554, up from a low of $0.7508 and just off a recent peak of $0.7578. That was the highest since June 2018 when it topped out at $0.7677, the next major chart target.
The kiwi held at $0.7086, not far from its own recent high of $0.7120 and up 7% since the start of November.
The Aussie took a knock on Tuesday when China confirmed a ban on Australian thermal coal in an on-going trade spat.
WA Budget mid-year review shows economy roaring back to life , Treasurer Ben Wyatt says
MonMonday 14
updated
MonMonday 14
DecDecember 2020 at 6:47am
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The WA Government says a rebound in household spending, an improving employment and housing market and higher tax revenue have put the economy in a stronger position than expected in the October Budget, which sought to buffer the state from the worst of the global COVID-19 pandemic.
Key points:
Debt is now expected to peak at $41.4 billion in 2024, down $1.4 billion
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