The economy

Where the money comes from

Return to surplus

The jewel in the Government’s crown is the $7.1bn budget surplus in 2019-20.  The Budget sets out:

• $11bn surplus in 2020-21
• $17.8bn in 2021-22
• $9.2bn in 2022-23

leading to the elimination of Government debt by 2029-30.

Growth in trading partnerships uncertain

The Budget notes continuing “uncertainties” around trade tensions, emerging market debt vulnerabilities and geopolitical issues.

With total trade covered by free trade agreements rising from around 26% to around 70% in the last 5 ½ years, you can see why there has been a flurry of activity to formalise trade terms with our regional and international partners.

Domestic growth solid but tempered

Australia’s economy is forecast to grow by 2¾% in 2019-20 and 2020-21. Jobs growth and economic stability is tempered by severe weather events and an anticipated decline in residential construction activity and house prices.

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