Australian MYEFO downgrades budget deficit

FXstreet.com (Bali) - Australia Mid-Year Economic and Fiscal Outlook, also known as MYEFO, predicts the 2013/14 budget deficit to stand at A$47bn vs A$30 bn August estimate, a number which is very much in line with pessimistic estimates, and falls somehow short to produce any major blow for the Australian Dollar value short term.

Further headlines included: "Net debt reaching 15.7% of GDP in 2016/17. Sees 2013/14 GDP at 2.5% (2.5 also seen in August); 20145/15 seen at 2.5% vs. 3.0% seen in August. Australia budget deficits totalling A$123bn over forward estimates. Says that without policy changes, budget projected to be in deficit every year to 2023/24, debt to reach A$667bn. Transition to non-resource drivers of economic growth likely to be slower than previously forecast..."