Invest
‘Australian economy is poised for strong growth’: Frydenberg
Australia has performed more strongly than any major advanced economy amid the greatest economic shock since the Great Depression, the Treasurer said in the Mid-Year Economic and Fiscal Outlook.
‘Australian economy is poised for strong growth’: Frydenberg
Australia has performed more strongly than any major advanced economy amid the greatest economic shock since the Great Depression, the Treasurer said in the Mid-Year Economic and Fiscal Outlook.
“The rapid recovery from the Delta imposed lockdowns is expected to see the addition of around one million jobs between October 2021 and the end of the forecast period, which is around 150,000 more jobs than forecast in the 2021-22 budget,” Josh Frydenberg said on Thursday (16 December).
“Having performed more strongly than any major advanced economy throughout the pandemic, the Australian economy is poised for strong growth underpinned by Australia’s high vaccination rate and unprecedented economic support to households and small businesses.”
Unveiling better than expected economic outcomes, Mr Frydenberg assured that the Omicron COVID variant is not expected to derail the country’s economic recovery.
“The expectations in the papers today, in MYEFO, is that we’re not going to see Omicron derail the recovery,” the Treasurer said.
As a result, real GDP is expected to grow by 4.5 per cent in 2021 and by 4.25 per cent in 2022.
Consistent with these figures, the unemployment rate is forecast to reach 4.25 per cent in the June quarter of 2023.
“This would represent the first time since before the Global Financial Crisis that Australia has sustained an unemployment rate of below 5 per cent and only the second time since the early 1970s,” the Treasurer said.
The MYEFO also showed minor improvements in the fiscal outlook since the 2021-22 budget, even after accounting for the impacts of the Delta-imposed lockdowns.
Namely, the underlying cash balance in 2021-22 is expected to be a deficit of $99.2 billion (4.5 per cent of GDP), a $7.4 billion improvement since the 2021-22 budget. And $2.3 billion stronger across the forwards.
Gross debt is projected to be lower in every year of the forward estimates, reaching 41.8 per cent of GDP at 30 June 2022 and stabilising at around 50 per cent of GDP in the medium term.
“Australia’s gross debt as a share of GDP is less than half the average across G20 advanced countries today, with Australia only one of nine countries in the world to have a AAA credit rating from the three leading rating agencies,” the Treasurer said.
“There is also a material improvement in the net debt position which now peaks at 37.4 per cent of GDP as opposed to 40.9 per cent in 2024-25, $65.7 billion lower than what was expected in May.”
As for wages, the MYEFO foresees a slight pick up of 2.25 per cent in 2021-22, before gradually expanding to 3 per cent by 2023-24.
RELATED ARTICLES
About the author
About the author
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more
Economy
CPI data another piece in RBA's interest rate decision puzzle, says REIA
The latest Consumer Price Index (CPI) data from the Australian Bureau of Statistics (ABS) shows that inflation rose 3.4% in the 12 months to February 2024, unchanged from the previous two months, ...Read more
Economy
Including passive job seekers in unemployment measure doesn't impact economic cycle view, study finds
New research from e61 Institute has found that while current unemployment measures may not capture all job seekers, broader definitions that include passive job searchers do not provide better ...Read more
Economy
Survey reveals heightened job security concerns among IT workers in 2024
A recent survey conducted by Authority Hacker has revealed that 89.66% of IT workers in the United States have increased concerns about job loss in 2024. Read more
Economy
Australian founders adapt to the challenging fundraising environment with optimism and strategic shifts
The landscape for start-up funding in Australia has been increasingly challenging, but this has not dampened the spirit of the country's entrepreneurs. Read more
Economy
Signs point to possible US economic 'soft landing' in ClearBridge analysis
The US economy may be steering towards a 'soft landing' despite mixed signals from the stock market, according to a recent analysis by ClearBridge Investments. Read more
Economy
Alternative fund managers predict capital raising surge in 2024
Alternative investment fund managers are predicting a sizable increase in capital raising efforts in 2024, according to a global study by Ocorian, a leading alternative investment fund administratorRead more
Economy
Understanding the economic indicators that affect your earnings
The landscape of personal finance is profoundly influenced by broader economic trends and indicators. Read more
Economy
Navigate market turbulence with expert advice: no crystal ball needed
In an era fraught with investment market uncertainties, from fluctuating interest rates to geopolitical strife, seasoned market experts are guiding investors through the mire, offering sage advice on ...Read more
