The news:<\/b> Deloitte has slashed its forecast for Australia\u2019s economic growth from 1.9% to 1.3% for 2026-27, warning the economy is projected to limp along at less than 2% annual growth for the next two financial years.<\/p>\n
The context:<\/b> This places the nation on track for its longest stretch of sub-2% economic growth since the 1990s recession, according to Deloitte\u2019s latest Business Outlook report.<\/p>\n
Deloitte Access Economics partner Stephen Smith stated that, while the economy is still growing, Australia\u2019s outlook has deteriorated over the past six months due to higher interest rates and the unresolved oil price shock triggered by conflict in the Middle East.<\/p>\n
Smith added that strong population growth has masked weak underlying productivity performance and lifted aggregate growth while doing little to improve living standards. He highlighted that years of insufficient investment in housing, infrastructure, energy and productive capacity have left the supply side of the economy struggling to keep pace with demand.<\/p>\n
Deloitte projects the headline consumer price index to remain above 4% for the remainder of the year, with interest rate likely to rise by 25 basis points in August. The firm also forecasts the unemployment rate to average 4.9% in 2026-27, potentially peaking at 5% over the subsequent financial years.<\/p>\n
Overall, Deloitte Access Economics expects the Australian economy to grow 2.2% in 2025-26, 1.3% in 2026-27 and 1.9% in 2027-28, marking a decrease from its prior forecasts of 2.4%, 1.9% and 2.0%, respectively.<\/p>\n
What they said:<\/b> \u201cUnder Labor, Australia has the lowest average unemployment of any government in half a century, smaller deficits and less debt than the Coalition left us, booming business investment, with tax cuts and higher wages that the right-wing parties oppose,\u201d Treasurer Jim Chalmers said.<\/p>\n
\u201cWe\u2019ve got a big economic agenda to grow Australia\u2019s economy, boost productivity and address inflation while we also help first homebuyers and roll out vital cost of living relief like tax cuts, higher wages and more paid parental leave from this month,\u201d he added.<\/p>\n
The source:<\/b> Deloitte media release<\/p>\n","protected":false},"excerpt":{"rendered":"The news: Deloitte has slashed its forecast for Australia\u2019s economic growth from 1.9% to 1.3% for 2026-27, warning…\n","protected":false},"author":2,"featured_media":572506,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[243966,79,10914,179,18,19,17],"class_list":["post-572505","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-australian-politics","tag-business","tag-deloitte","tag-economy","tag-eire","tag-ie","tag-ireland"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/116876138975236154","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/572505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=572505"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/572505\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/572506"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=572505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=572505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=572505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}