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From the AFR:
Finance Minister Mathias Cormann has hinted at a downgrade in growth forecasts at the mid-year economic update, saying the previous May growth forecast reflected “conditions at the time”.
Mr Cormann said that while the government’s May budget GDP growth forecast was within the Reserve Bank’s new range – down to 2.5 per cent to 3.5 per cent from 2.75 per cent to 3.75 per cent – he acknowledged the bank’s revised forecast was weaker.
Problem is the RBA is still too high as well.
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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