IMF endorses everything (with risks)

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The IMF’s new report on Australia is out and pretty much endorses everything official with the now regular warning about the offshore funding vulnerability in the banking system. The section on current account deficits is interesting, too, with a medium term forecast of 6% and worse if government misses its surpluses (which means it will be worse).

One wonders in this post-GFC world what the tolerance for Australian current deficits will be in global markets. It’s not something I’d recommend testing.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.