The recovery of Australia‘s economy and related exchange traded fund (ETF) is in full swing. Monetary and fiscal policies may start changing to nurture healthy growth.
Australia’s Central Bank Governor Glenn Stevens says that government stimulus spending will be eased and interest rates raised as the economy expands, reports Jacob Greber for Bloomberg.
Australia’s government has revealed an improvement of up to $12.3 billion in the past year’s budget and the improved outlook has contributed to a fall in long-term interest rates, according to AsiaOne News.
Despite the strides made, there are still pitfalls ahead.
The government projects budget deficits until 2016. Treasurer Wayne Swan stated that the shortfall will equal 4.9% of GDP in the year ending June 30 and net debt will peak at 13.8% of GDP in fiscal 2014.