sydneyaustralias federal government on thursday forecast a budget deficit of 992 billion australian dollars us7116 billion in the year to june 30 2022 a a74 billion improvement on its original estimate made earlier this year having performed more strongly than any major advanced economy throughout the pandemic the australian economy is poised for strong growth underpinned by australias high vaccination rate and unprecedented economic support to households and small businesses treasurer josh frydenberg said when announcing the governments midyear budget review australias economy is expected to grow 45 in 2021 and by 425 in 2022 according to the budget review consistent with the strong economic recovery the unemployment rate is forecast to reach 45 by mid2023 this would represent the first time since before the global financial crisis that australia has sustained an unemployment rate of below 5 and only the second time since the early 1970s mr frydenberg said the upbeat budget outlook comes shortly after news that australias job market surged back to life in november adding 366100 positions over the month and indicating that the economy is bouncing back from pandemic lockdowns that stalled growth midyear the unemployment rate fell to 46 in november from 52 in october bringing the economy closer to full employment and further pressuring the reserve bank of australia to bring forward interest rate increases from its current guidance of 2024