Back to surplus before every major advanced economy

Australia emerged stronger

Australia emerged from the global recession with a lower debt and deficit than all of the major advanced economies.

Australia's budget is projected to return to surplus in 2012‑13, ahead of any of the major advanced economies, and years before Canada and Germany — the next best placed countries.

Major challenges abroad

The major advanced economies suffered deep contractions, with their fiscal positions deteriorating across the board. None of them are projected to return to surplus until 2015 at the earliest.

While they emerged from recession around the second half of 2009, their recovery remains weak.

The global recession inflicted tremendous economic damage and left a legacy of large fiscal deficits and mounting public debt around the world.

Gross public debt levels in these economies are now close to 60‑year highs, with net public debt forecast to reach 93.9 per cent of GDP on average in 2015.

This surge in public debt is occurring at a time when pressure from rising health and pension spending is building — making the already difficult challenge even more difficult.

Australia is well positioned

In contrast, Australia avoided recession, and our public finances are sound.

Greece has brought the importance of credible and sound public finances to the fore.

Australia's budget is expected to return to a small surplus in 2012‑13 and remain in surplus over the medium term.

Australia's net debt is expected to peak lower and earlier than previously expected, at 6.1 per cent of GDP in 2011‑12. This is less than one‑tenth the average of the major advanced economies.