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From the AFR:
The budget will fall short by about $5 billion every year if “new normal” economic growth, at a slower 3 per cent, becomes entrenched, delaying the return to sustained surpluses indefinitely.
According to PwC modelling, the nation will lose $288 billion worth of growth over the next decade, making it harder to pay for promised rises in defence, education, old age and welfare services.
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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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