Treasury Downgrades Growth Forecasts Ahead of Budget

Global financial uncertainty has prompted the Treasury to downgrade its growth forecasts for major economies ahead of the federal budget. Geopolitical tensions in the Middle East as well as a slowdown in China has led to the rethink on global economies, with Treasurer Jim Chalmers warning of a “fraught and fragile” outlook internationally. China’s growth has been downgraded by 0.25 percentage points in 2025 to 4.25 per cent, according to Treasury forecasts. The downgrade would mean China’s growth would be the weakest period since the Asian nation opened its economy up in the 1970s. The UK’s economy’s forecast has also been downgraded by 0.5 percentage points to 1.25 per cent in 2025, prompted by cost of living pressures and a slump in exports following Brexit....