Country Economic Forecasts > Australia

Economy continues to grow steadily and we maintain our 2018 forecast of 2.7% growth. Government announces sweeping income tax cuts but initial impact will be limited, with majority of changes deferred to the mid-2020s

The high frequency data are broadly in line with our forecast. The recent slowdown in employment growth has been accompanied by a dip in the consumer confidence surveys, although they remain in positive territory, and growth in retail turnover remains subdued. In contrast, the business confidence and activity surveys are still buoyant, suggesting the recovery in non-mining investment is continuing, and the merchandise trade data indicate that exports have bounced back in Q1 after a weak end to 2017. Given this, we maintain our forecast for GDP growth of 2.7% this year.

To read the full briefing please
If you are not a subscriber, request a free trial of our Country Economics Forecasts by filling out the form below