The economy contracted by an estimated 0.25% in 2019-20, with a further fall of 2.5% in 2020-21.
The budget deficit is estimated to be:
– $85.8 billion in 2019-20 (4.3% of GDP, and
– $184.5 billion in 2020-21 (9.7% of GDP).
This would be the biggest deficit as a share of GDP since 1946 in the aftermath of WWII.
The current cash target rate of 0.25% has been left unchanged.
Please get in touch if you’d like assistance with your personal financial situation.
Disclosure: Peter Small is a Representative of Fluid Financial Planning Pty Ltd ABN 85140515680, holder of Australian Financial Services Licence number: 389518, Suite 4a, Level 1, 5 Ridge Street, North Sydney NSW 2060 General Advice Warning: This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information. Investment Performance: Past performance is not a reliable guide to future returns as future returns may differ from and be more or less volatile than past returns.