Australian Treasurer Frydenberg: Economy rebounding strongly but a challenging road ahead

Australian Treasurer Josh Frydenberg warns that the road ahead for the economy remains challenging despite a strong rebound.

The unemployment rate will fall to pre-COVID-19 levels in around four years, he added.

Additional quotes

“Working hard to diversify export markets.” 

“Budget forecasts reflect the expected impact of China trade restrictions.”

“Still expects resources exports to rise 5% in 2021/22 even with China action.”

His comments come alongside the release of the country's Mid-Year Economic and Fiscal Outlook (MYEFO) update this Thursday.

Key takeaways from the Budget issued

Budget deficit forecasts just under AUD 198bn for 2020/21.

GDP forecast higher at 4.5% in 2021.

Unemployment rate seen peaking at 7.5% in Q1 2021.

Market reaction

AUD/USD keeps gains but remains below the 0.7600 level on the Mid-Year Budget release accompanied by Frydenberg’s statement.

The spot was last seen trading at 0.7583, up 0.10% on the day.