BY RACHEL PANNETT

CANBERRA, Australia -- The Australian government said it expects unemployment to be lower than originally forecast, and economic growth to be stronger in the current fiscal year, as the resource-rich nation sidesteps the worst of the global downturn.

But the positive effects of the improved economic outlook will take some time to flow through to the budget bottom line, with the government leaving little unchanged its budget deficit forecast for the fiscal year that started July 1.

The government now expects to record an underlying budget deficit of 57.7 billion Australian dollars (US$52.16 billion) ...