Treasury downgrades growth forecasts for major economies due to global financial uncertainty.
Global financial uncertainty has prompted the Treasury to downgrade growth forecasts for major economies ahead of the federal budget. Geopolitical tensions in the Middle East and a slowdown in China have led to a rethink on global economies, with Treasurer Jim Chalmers warning of a "fraught and fragile" outlook internationally. In response, China's growth forecast has been downgraded by 0.25 percentage points to 4.25% in 2025, while the UK's economy forecast has been downgraded by 0.5 percentage points to 1.25% in 2025, due to cost of living pressures and a slump in exports following Brexit. Japan's growth has been revised to 0.75% in 2024, down by 0.25 percentage points after weaker than expected consumption.
April 21, 2024
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