Interest rate differentials between the US and Australia are set to narrow further, creating Foreign Exchange opportunities for investors
The combination of strong commodity prices, robust employment growth and higher wages growth will likely see the Government achieve a modest Budget surplus in FY23.
Looking ahead, the mix of low productivity growth and the rising cost of the National Disability Insurance Scheme (NDIS), health and aged care expenditures means that fiscal sustainability remains elusive. The Government has taken some small steps to address these issues in the Budget, but we believe bolder measures will be required if Australia is to achieve sustainable fiscal outcomes.
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