Australia’s Treasurer, Jim Chalmers, has announced that the growth outlook for major economies such as China will be reduced in the upcoming budget release next month. This is due to events in the Middle East casting a shadow over the global economy and exacerbating concerns about inflation and weaker growth. The Australian treasury department typically forecasts GDP for countries like China, India, Japan, the UK, and the US in their budget updates.
Chalmers stated that China’s economic growth is expected to be around 4% this year, with 2025 and 2026 projected to be the weakest periods of growth since China began opening its economy in the late 1970s. Japan’s growth forecast for 2024 was revised down to 0.75% due to weaker-than-expected consumption figures, particularly a 0.5% decline in household spending in February.
Despite these challenging global economic conditions, Chalmers indicated that Australia is on track to achieve a second consecutive surplus when the budget is released in less than four weeks. However, he emphasized that uncertainty surrounding the global outlook was a key focus of recent discussions with international counterparts and central bank leaders in Washington. The impact of geopolitical events and economic uncertainties are likely to continue influencing Australia’s economic forecasts and policy decisions in the near future.
