Government forecasts for Australia's economic growth and budget deficit will be "substantially worse" in the coming May 12 budget, Treasurer Wayne Swan said.
"The simple fact is that a global recession, and deep downturns for our key trading partners, make it certain that our own forecasts for growth and revenue in the budget will be substantially worse than in UEFO (Updated Economic and Fiscal Outlook)," Mr Swan said in emailed comments.
The previous forecasts, released in February, were for economic growth of 1% for the fiscal year to end June 2009 and 0.75% for 2009/10.
Mr Swan's assessment followed data showing growth in major trade partner China had halved in around 12 months, and was at its lowest level in almost a decade.
"It provides stark evidence of the impact of the global recession on the mining boom which supercharged Australia's economy in recent years," Swan said.
Reuters
