28 Apr 2015
Australia's budget not to return to surplus until 2023/24 - DB
FXStreet (Bali) - Adam Boyton, Chief Economist at Deutsche Bank, expects Australia's Federal Budget not to return to surplus until 2023-24.
Key Quotes
"The Federal Budget does not, on our forecasts, return to surplus until 2023-24. Net debt peaks at 23.1% of GDP in 2018-19 and is still 18.4% of GDP in 2024-25."
"With general government sector net debt across the States and territories likely to be around 3-4% of GDP over coming years, total Australian general government net debt should still peak (just) below the 30% of net debt to GDP level that one ratings agency has said could see a reassessment of Australia’s AAA sovereign rating."
Key Quotes
"The Federal Budget does not, on our forecasts, return to surplus until 2023-24. Net debt peaks at 23.1% of GDP in 2018-19 and is still 18.4% of GDP in 2024-25."
"With general government sector net debt across the States and territories likely to be around 3-4% of GDP over coming years, total Australian general government net debt should still peak (just) below the 30% of net debt to GDP level that one ratings agency has said could see a reassessment of Australia’s AAA sovereign rating."