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Macro - Country Economic Forecasts - Australia

Publisher Oxford Economics
Published Oct 13, 2025
Length 10 Pages
SKU # OFE20535947

Description

Australia's economy has strengthened in recent months. Alongside a rise in consumer confidence, household spending momentum has continued in July and August after a strong Q2. At the same time, potential buyers are flocking back to the property market, pushing prices higher as interest rates come down. But weaker employment growth and still-struggling business investment highlight the tensions in the economy. These competing dynamics essentially net out, leaving our 2025 and 2026 growth forecasts largely unchanged from September. We forecast growth of 2.1% in 2026 following this year’s expected 1.7% expansion.

Table of Contents

10 Pages
Australia: Economy to take a breather after recent surge
Forecast overview
Recent developments
Short-term growth outlook
Key drivers of our short-term forecast
Economic risk
Economic Risk Evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Politics

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