Deluded IMF bolsters Australian AAA

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From David Uren:

The International Monetary Fund expects a $27 billion surge in federal and state tax revenue over the next four years to bring the combined budget position back to surplus by 2020, two years earlier than it predicted six months ago.

If borne out in next month’s budget, the IMF forecasts should guarantee Australia retains its AAA credit rating because net public sector debt peaks at a lower level and then starts declining more rapidly.

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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.