Fed:Costello likely to cut growth forecast in budget review

AAP General News (Australia)
12-19-2006
Fed:Costello likely to cut growth forecast in budget review

Australia's worst drought in over 100 years will force Treasurer PETER COSTELLO to
cut his economic growth forecast in tomorrow's mid-year budget review.

A report by the government's commodities forecaster highlights the damage inflicted
by the drought on the country's farming sector .. and revenue from rural exports.

Mr COSTELLO says the drought's much more severe than anybody anticipated back in May
.. and it'll have an effect on growth.

The treasurer previously predicted gross domestic product of 3.25 per cent for 2006/07
.. up from 2.9 per cent growth in the previous financial year.

AAP RTV cb/sb/wf/psm/

KEYWORD: ECONOMY (CANBERRA)

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