Tourism strengthened in 2016 MYEFO Review
December 22, 2015
The 2015-16 Mid- Year Economic and Fiscal Outlook (MYEFO) downgraded growth forecasts for the economy and predicted that a return to a balanced budget would take till 2020-21 at the earliest.
The MYEFO provided recognition that the economy is transitioning from strong resource investment-led growth to broader-based drivers of economic activity. The transition is being supported by historically low interest rates, the fall in the Australian dollar and low oil prices.
The Government estimates suggest that Australia’s real gross domestic product (GDP) growth will increase from 2.5 per cent of GDP in 2015-16 to 2.75 per cent in the 2016-17 year.
Employment forecasts are positive, with employment predicted to grow by 2 percent by June 2016, and by 1.75 per cent in the following 12 months. Unemployment is forecast to remain at approximately 6 per cent over June quarters of 2016 and 2017.
There has been no impact on the funding for Tourism Australia, and the only major savings will be via a postponement of additional border protection measures.
Please click here for a copy of the Member Bulletin highlighting the changes to tourism and transport since the release of the 2015-16 Budget.