Category: Economic News & Updates
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Economic Outlook 2026
Australia’s economy is projected to grow by 2.1% in 2026, bolstered by a robust labor market and high commodity demand. However, persistent labor shortages may hinder growth and increase inflation. The RBA is likely to maintain interest rates amid strong currency pressures. Housing supply issues could drive prices higher.
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Housing Shortfall Concerns Due to Declining Approvals
Dwelling approvals declined to 8.8% in March. Although total numbers are up compared to March 24Q, ongoing housing shortfalls may negatively impact economic growth and sustain high housing costs and inflation.
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Australia’s Economic Outlook for 2025: Challenges Ahead
In 2025, Australia is expected to experience flat economic growth or decline due to high business closures and job losses impacting income tax revenue. Contributing factors include low household consumption, a labor shortage in construction, and external pressures from a potential trade war with the US. Economic recovery appears sluggish over the next 12-18 months.
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