Forex Flash: Australia budget deficit estimates creeping up to 1.7% of GDP – TD Securities

FXstreet.com (Barcelona) - Concerns regarding the Australian budget are getting louder as the Budget is brought down on May 14. In October, the Treasury was pointing to a surplus of+ $A1b or +0.1% of GDP for this year 2012/13, but estimates are creeping up to -$A25b, or –1.7% of GDP, or higher, with a projection a substantial $A12b shortfall in revenues compared with October. “With debt rising to $A300b or only 20% of GDP it shouldn’t rattle Australia's AAA status, however, but a medium-term return to surplus (a la Canada) is required to keep Australia off the credit ratings radar”, wrote TD Securities analyst Annette Beacher.