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Australia’s economy is expected to see a 3.3% growth in FY22

Projected growth for 2024-25 is 2.3 percent and 2.5 percent in the fiscal year after that

Due to extraordinarily high prices for commodities such as iron ore and coal, the new government’s forecast is more than halved to AUD36.9 billion (USD23.3 billion). Taras Vyshnya/Shutterstock

ABC News reported that the economy is expected to go up by 3.3 percent in FY22 before declining at a rate of 1.5 percent in 2023-24.

Projected growth for 2024-25 is 2.3 percent and 2.5 percent in the fiscal year after that. 

For this fiscal year, the previous conservative government had forecast a deficit of AUD78 billion (USD49 billion).

Due to extraordinarily high prices for commodities such as iron ore and coal, the new government’s forecast is more than halved to AUD36.9 billion (USD23.3 billion). However, as commodity prices normalise, deficits will rise again.

More: As Australia’s economy continues to recover, so does its list of setbacks

The proposed budget would lessen the financial burden on families by expanding childcare subsidies and gradually extending paid parental leave from 18 to 26 weeks by 2026. Such family expenditure boosts parents’ productivity.

According to the Commonwealth Bank of Australia, the most recent quarterly CommSec State of the States reports that Tasmania has regained first place in the ranks of the best-performing state and territory economies after falling to third place in July.

Following Tasmania in the economic rankings are Queensland, the ACT, and Western Australia. Queensland’s second-place finish is its highest ever, surpassing the equal third position from January 2014. Victoria still leads the nation in retail spending despite falling to number six in overall economic standing.

In other news, The Guardian mentioned that the economy will suffer in the short term from the frequency of weather disasters, and the government will have to spend more to prepare for future calamities.

The budget predicts that the flooding in the southeastern part of the country will force the economy to decline by roughly a quarter of a percentage point during the current quarter, as Australia experiences its third La Niña in many years.

Extreme weather permitting, rebuilding in succeeding quarters will boost economic activity.

The Property Report editors wrote this article. For more information, email: [email protected].

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