Wages in Australia to fall despite recovery, says survey

The Sydney Morning Herald/The Age has conducted a Scope Survey on a range of critical indicators over 2021 and 2022.

The findings of this survey are based on an assessment by Australia’s top twenty-two economists.

The economists expect wage growth will drop to 1.2 per cent in 2021 and then lift to 1.6 per cent in 2022.

- Advertisement -

According to the survey, wage rises would still fail to outpace the panel’s inflation expectations.

This is projected as 1.7 per cent over the next 12 months.

However, the economy is expected to grow by 6.5 per cent in 2021 and 2.9 per cent in 2022.

The expert panel forecasts that the jobless rate will continue improving.

It will drop to 6.4 per cent in 2021 and 5.9 per cent in 2022.

The experts believe that the Australian government will preside over a $161 billion deficit in the coming financial year, followed by a $111 billion shortfall in 2022-23.

- Advertisement -

The Australian government expects its gross debt, which is currently $813 billion, to reach $1.1 trillion in the 2030s.