Budget outlook promising as the ‘trend is our friend’
Global debt has now reached record levels, hitting $211 trillion.
Government debt in Australia may not be as dire as other nations, but our debt levels have increased from 16.7% of GDP in 2009 to 41.7% this year.
Ross Greenwood says it’s not the size of our debt that’s necessarily the problem but rather the rate at which it grows.
Deloitte Access Economics Chief Economist Chris Richardson tells Ross there’s some good news on the horizon.
“The trend is our friend on the budgetary front.
“And in part, it is company taxes roaring back to life.
“They had a starring spell all the way through to the global financial crisis but have mostly been on the back foot since then.”
It’s stagnant wage growth that’s the glaring issue, with Chris saying wage growth can “push people into higher tax brackets” when job growth can’t.
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