Australia’s Fiscal Challenges: Treasurer Chalmers’ Economic Update

Treasurer Jim Chalmers has delivered his Ministeral Statement on the Economy. In summary Chalmers pointed to Australia facing a more challenging fiscal outlook as key trading partner China cools and the local job market loosens

• tumbling iron ore prices and a softening labour market have hit government revenue
• leaving a “sliver” of the revenue windfalls that supported the Budget bottom line for the past two years
• Chalmers statement sets the scene for next month’s mid-year Budget update
• Chalmers said he was “confident not complacent” that the worst of the inflation storm had passed

AUD not a lot moved, there is not a lot new in Chalmer’s remarks.

This article was written by Eamonn Sheridan at www.forexlive.com.