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From the AFR:
The forecast average iron ore price is to be downgraded to around $US60 in next week’s mid-year budget update, resulting in a revenue write-down of more than $9 billion in two years and pushing back any hope of the budget returning to surplus.
The revenue losses from iron ore will be in addition to the write-downs that will come from falls in the coal and gas prices, which are linked to oil.
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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.
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