Australian Government Upgrades Recovery Outlook But Will Continue with Deficit Spending

Australian Government Upgrades Recovery Outlook But Will Continue with Deficit Spending
Treasurer Josh Frydenberg handed down the updated economic and fiscal outlook in Canberra, Australia on Dec 17 , 2020.Sam Mooy/Getty Images
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Australian federal government will continue with its big deficit spending to keep up the economic momentum despite a better-than-expected performance in jobs growth and economic activity.

The economy is expected to grow by 0.75 percent in 2020/21, a big turnaround from the 1.5 percent decline predicted. The improvement is primarily due to stronger consumer spending and housing investment than anticipated.