Australia’s Treasurer, Jim Chalmers, has announced that the country will be revising its growth outlook for major economies, including China, in its upcoming budget release. Chalmers cited concerns about the global economy as a key factor in the revised forecasts, citing events in the Middle East, inflation worries, and weaker growth.
During recent meetings with international counterparts and central bank chiefs in Washington, uncertainty about the global economic outlook was a major topic of discussion. Australia’s treasury department will be updating its GDP forecasts for China, India, Japan, the UK, and the US in the budget.
Chalmers mentioned that China’s economic expansion is expected to be around 4% this year, with growth slowing in 2025 and 2026. Japan’s growth forecast for 2024 was also revised down due to weaker consumption figures, with household spending declining for the 12th consecutive month in February.
Despite these challenges to the global economy, Chalmers expressed confidence that Australia is on track for a second consecutive surplus when the budget is released in less than four weeks. The country remains vigilant in monitoring global economic developments and adjusting its forecasts accordingly.