Treasury will accept more external advice after a review identified economic forecasting shortcomings that led successive governments to spend big under the misapprehension of relentlessly strong resources-led growth.
In a speech that has surprised observers with its frankness, former banker Warren Tease said Treasury overestimated nominal GDP growth in the early 1990s, as well as in the aftermath of the global financial crisis. Forecasters also failed to capture wild swings in commodity prices, he said.
Domainfax is reporting that Treasury is going to take outside advice on its Budget forecasts:
