Australia Seen Posting Back-to-Back Surpluses in Global Rarity

Australia probably recorded a second consecutive budget surplus — a rare example of fiscal strength in a world dominated by deficits — due to stronger commodity prices and an ultra-tight labor market.

Economists reckon Tuesday’s budget will show the government’s books in the black to the tune of A$11 billion ($7.3 billion), or 0.4% of gross domestic product, in the 12 months to June 30. Such an outcome would bolster the center-left Labor government’s economic credentials as it prepares for an election due in a year.