Economic Update Video – August 2020

The government’s July budget update gave an insight into the economic impact of the health crisis.

The economy contracted by an estimated 0.25% in 2019-20, with a further fall of 2.5% in 2020-21.

The budget deficit is estimated to be:

  • $85.8 billion in 2019-20 (4.3% of GDP; and
  • $184.5 billion in 2020-21 (9.7% of GDP).

This would be the biggest deficit as a share of GDP since 1946 in the aftermath of WWII.

The current cash target rate of 0.25% has been left unchanged.

 

Any information or advice contained on this website is general in nature only and does not constitute personal or investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. You should seek independent financial advice prior to acquiring a financial product. All securities and financial products such as derivatives or instruments transactions involve risks. Please remember that past performance results are not necessarily indicative of future results.

Liked this article? Share it!