Australia government downgrades outlook for economy, budget surplus

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Australia government downgrades outlook for economy, budget surplus
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Australia's conservative government on Monday cut its outlook for growth in...

SYDNEY - Australia’s conservative government on Monday cut its outlook for growth in the economy and wages as part of a A$33 billion downgrade to expected revenues over the next four years.

The budget surplus for the fiscal year to June 2020 is now seen at A$5 billion, down from A$7.1 billion previously. That reluctance has put the onus on the Reserve Bank of Australia to stimulate the economy with three cuts in interest rates since June taking them to a record low of 0.75%. In all, the cumulative surplus out to 2023 was now seen at A$23.5 billion, a drop of more than A$21 billion from the previous projection.

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