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Your Budget 2017-18

Filter information on Budget 2017-18 by selecting the topics you're interested in.

Budget overview

This Budget is the next stage in the Government's economic plan, building on commitments from the 2016-17 Budget and the 2016 election.

Global economic outlook

There are clear and growing signs that global growth is strengthening

There are clear and growing signs that global economic conditions are improving. Chinese GDP growth has ticked up in early 2017 and the United States economy is performing well.

The outlook for business investment and industrial production in several major economies is picking up. Business and market sentiment have strengthened as confidence in global prospects has improved.

World trade growth has started to lift after unusually weak growth in recent years. This lift is broad-based, across both advanced and emerging economies.

“The improvement in the global environment is helping us here in Australia.”
RBA Governor Philip Lowe

Stronger trade growth is an important foundation for a more vibrant world economy. This is particularly true for Australia as trade is an important source of growth in the Asian region.

The signs are also encouraging for Australia’s major trading partners, which are forecast to continue growing faster than the global economy. This will continue to present opportunities for Australian businesses.

Australia is well-positioned to take advantage of a strengthening global outlook and ensure all Australians feel the benefits.

Global growth
 

The chart shows global growth outcomes from 2012 to 2016 and Budget forecasts for global growth for 2017-2019. Global growth declined from an average of around 3.5 per cent (2012-2014) to 3.1 per cent in 2016. Budget forecasts are for global growth to steadily lift over the next three years, from three-and-a-quarter per cent in 2017 to three-and-three-quarter per cent in 2019.

Evolution of IMF global
growth forecasts

The chart shows IMF forecasts of global growth have generally been trending downward over the past five years. For each year, early forecasts for robust growth (often around four per cent) have been steadily revised down to between three and three-and-a-half per cent. However in contrast to this trend, IMF forecasts for 2017 global growth were revised up between October 2016 and April 2017, from 3.4 to 3.5 per cent.