Headwinds buffeting the economy – notably high inflation and a global slowdown – have led to a significant downgrade of Australia’s economic growth forecasts, compared with the pre-election estimates.
Treasurer Jim Chalmers will tell parliament on Thursday that estimated growth has been cut by half a percentage point for last financial year, this financial year and next year.
It is now expected that real GDP grew by 3.75% in 2021-22, rather than the pre-election forecast of 4.25%.
