Australia's unemployment rate is due to rise in 2014 as the International Monetary Fund (IMF) downgrades growth prospects for the nation.
Treasurer Joe Hockey on Wednesday confirmed figures released overnight in the IMF's World Economic Outlook, outlining future risks for Australia and the global economy.
"The IMF has downgraded their expected growth rates for the Australian economy by 0.5 percentage points for both 2013 and 2014," Mr Hockey said in a statement.
That puts forecast growth at 2.5 per cent for the 2013 calendar year, down from the three per cent predicted in April.
For calendar 2014, the IMF sees Australian growth at 2.8 per cent, rather than 3.3 per cent.
"Worryingly, the IMF forecasts Australia's unemployment rate to rise from 5.6 per cent in 2013 to 6.0 per cent in 2014," the treasurer said.
"The downside risks documented in the World Economic Outlook confirms significant risks to the Australian budget that will need to be appropriately managed by the coalition government."
The IMF report also downgrades growth around the globe, including for Australia's major trading partner China.
The world economy is now expected to grow at 2.9 per cent in 2013, down from 3.1 per cent in the IMF's July Update.
The forecast for 2014 has been downgraded to 3.6 per cent from 3.8 per cent.
Share
