Australian Economy
In December Treasurer Joe Hockey revealed that the budget deficit was most likely to be near $60 billion. In a $1.5 trillion economy this works out at around 3%. In theory deficits can be good for an economy when they make up for a shortfall in private demand and provide the impetus for the private sector to grow at a faster rate. Better to spend money stimulating job creation rather than fund a larger number of unemployment benefits. Any budget deficit adds to government debt but it is the type of government spending that really matters.....
International Economy
The outlook for the international economy in 2014 has continued to improve. The ongoing recovery in the two largest economies, the United States and Japan, should assist a modest improvement in both Europe and Emerging Markets. Of course the recovery in Europe remains off a very low base and in reality much of the region remains depressed.....
Read the full Economic & Market Outlook here.
Attachments
Economic & Market Outlook January 2014
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