Australia’s Economic Outlook Summary:
GDP Growth
- 2023: 2.0%
- 2024 Forecast: 1.2%
- 2025 Forecast: 2.1%
The GDP growth forecast shows a modest rebound in 2025, aligning with global trends. Australia’s growth is hindered by weakened consumer demand and adjustments in housing investment, yet recovery is expected to be supported by resilient trade in commodities and moderated inflation pressures.
Inflation Rate
- 2023: 5.6%
- 2024 Forecast: 3.3%
- 2025 Forecast: 3.3%
Australia’s inflation is projected to taper gradually as supply chains normalize and fuel prices stabilize. Efforts to curb inflation align with global monetary tightening, aiming for a return to target by 2025. Fiscal Policy and Public Debt Fiscal Balance (Percent of GDP): Expected fiscal deficit reduction is anticipated through steady tax revenue growth and controlled expenditure. Debt-to-GDP Ratio: Projected to stabilize at approximately 36.8% by 2025, reflecting disciplined fiscal policy amidst global economic pressures.
Unemployment Rate
- 2023: 3.7%
- 2024 Forecast: 4.1%
- 2025 Forecast: 4.4%
Australia’s labour market demonstrates resilience, although modest increases in unemployment are anticipated due to economic adjustments and labor cost stabilization.
