Part 2: Economic Outlook
Against the backdrop of weaker global economic growth, the Australian economy continues to grow solidly. The outlook is for an improvement in Australia's real GDP growth, which is unchanged since Budget.
Exports and dwelling investment have been growing strongly and there are tentative signs of recovery elsewhere. Interest rates at historic lows are supportive of growth. The depreciation of the Australian dollar and recently signed free trade agreements are improving the prospects for the trade‑exposed sectors of the economy.
In contrast, nominal GDP growth in 2014‑15 is expected to be weaker than forecast at Budget and the weakest growth in a financial year in over 50 years. This reflects a substantial fall in commodity prices, particularly iron ore prices (which fell by more than all major forecasters expected) and further moderation in wage growth. This has led to lower forecast company and individuals' income tax receipts and government payments have increased.