Bloomberg (September 25)
“China is the biggest buyer of Australian goods from iron ore to coal and food products and a windfall from recent elevated commodity prices helped Canberra report its first budget surplus in 15 years. If Chinese demand were to weaken, it would lower those prices and slim Australia’s trade surpluses, or even return it to deficits.” The Council of Financial Regulators (CFR) found that “The impact of a deeper economic deterioration in China will be mainly felt in Australia through weaker trade and reduced risk appetite in financial markets.”
Tags: Australia, Budget surplus, Buyer, Canberra, CFR, China, Coal, Commodity prices, Food products, Iron ore, Risk appetite, Trade surpluses, Windfall
The Straits Times (February 20)
“In spite of a substantial budget surplus,” Singapore is planning to raise taxes to meet “the challenges that lie ahead—in the form of financing healthcare in an ageing society, meeting infrastructure needs and ensuring security.” This approach starkly contrasts with the U.S., which has cut taxes despite running an enormous budget deficit, but fiscal sustainability has been “a mainstay of Singapore’s economic planning since independence.”
Tags: Budget surplus, Challenges, Deficit, Economic planning, Fiscal sustainability, Healthcare, Independence, Infrastructure, Security, Singapore, Taxes, U.S.
