Economic growth forecast for Australia
The key pillars of the 2017 Federal Budget are:
- guaranteeing essential government services
- easing pressure on the cost of living
- building on the Government’s plan for economic growth and jobs
Major economic forecasts from the Federal Budget
There have been encouraging signs that the global economy will strengthen over the coming years. For Australia the major economic forecasts of the Budget for the fiscal year 2017-18 include:
- The Budget deficit will reduce slightly from $37.6 billion (2.1% of GDP) in 2016-17 to $29.4 billion (1.6% of GDP) in 2017-18, then significantly reducing to $2.5 billion (0.1% of GDP) in 2019-20. The Budget is expected to return to surplus in the following year
- Real GDP growth of 2.75% for 2017-18 projected to increase to 3.0% for 2018-19 and remaining steady at that rate for the forecast period
- Unemployment is expected to decline in 2017-18 to 5.75% and decline further to 5.25% by 2020-21
- CPI growth of 2.0% for 2017-18 and increasing slightly to 2.25% in the flowing year 2018-19 and 2.5% the year after.
Understanding the changes
There were many things announced in the 2017 Federal Budget. It’s important to see a financial planner to understand what these changes mean for you. Just call 1800 620 305 for an obligation-free appointment with a StatePlus planner.