Westpac on the the Mid-Year Economic &....>

AUSTRALIA: Westpac on the the Mid-Year Economic & Fiscal Update (MYEFO). "The

economic growth forecasts (real and nominal GDP) have been rounded down for

2017/18 but are unchanged thereafter. The 2017/18 budget deficit is projected to

be $23.6bn, some $5.8bn lower than the May Budget forecast of $29.4bn. This is

more than accounted for by a $6.9bn boost from revisions to the forecasts. The

improved budget position is driven by revisions to the forecasts, providing a

boost of $11.2bn, with revenues $2.4bn higher and expenses undershooting by

$8.8bn. Higher company tax returns and better than expected superannuation tax

receipts more than offset the impact of slower wages growth and softer economic

growth in 2017/18. The budget balance is forecast to improve from a deficit in

2017/18 of $23.6bn (1.3% of GDP) to a surplus in 2020/21 of $10.2bn (0.5% of

GDP). Real GDP growth was downgraded to 2.5% for 2017/18 (from 2.75%). On wages

growth, the government still expects this to accelerate across the forecast

period, albeit with the profile lowered by 0.25% each year to reflect the weaker

starting position. The risk is that even this revised profile is too optimistic

given ongoing structural headwinds."