Eyes on Australia’s Budget

As Australia grapples with a slowing resources sector exacerbated by plummeting commodity prices, analysts say the Australian budget due Tuesday will be about propping up sub-par economic growth rather than the traditional fiscal discipline.

Falling commodity prices and slowing income growth are expected to strip off 21 billion ($16.6 billion) Australian dollars from revenues, according to a May 6 Goldman Sachs report.

Iron ore is such a central part of the Australian government’s revenue that “the key revision to economic parameters is likely to be a downward revision to iron ore prices and the terms of trade,” ANZ said in its May 4 budget preview report.


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.