Tough Budget ‘on the cards’

FORECASTS published yesterday by the Department of Finance point to a tough December Budget.

IIB Bank chief economist Austin Hughes said the Department of Finance forecasts suggest tough conditions in the economy will persist, but elements point to a silver lining in the cloudier outlook.

“Not surprisingly, its forecasts for economic growth were revised down from those presented at the time of the Budget. We reckon the intended message from these revised forecasts are that economic conditions are going to remain tough for a while longer, so firstly, expect a tough Budget and secondly, expect a reduction in the rate of pay increases.” IIB forecasts aren’t dramatically different from the department projection.