SYDNEY – The Australian economy will grow at 2.5 percent in the 2017-18 financial year, down 0.25 percent from the forecast in May, Treasurer Scott Morrison announced on Monday.
The forecast was announced in the Mid-Year Economic and Fiscal Outlook, which also predicts that the country’s GDP will grow at 3 percent in the next financial year between July 1, 2018-June 30, 2019.
The treasurer attributed the downward revision to the moderate wage growth and weakening of private consumption, according to a statement.
The report anticipates a budget deficit of AU$23.6 billion ($18.07 billion) in the current financial year.
It also indicates that nominal payments have decreased by a total of AU$6.5 billion.
The Treasury department confirmed that the Australian budget is on track to return to a surplus of AU$10.2 billion by the 2020-21 fiscal year.
The projected surplus in 2020-21 represents a AU$2.7 billion improvement compared with the May estimate.