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Economy
Latest Australian economy news and updates
Economy
Global Economic Week Ahead: US Inflation and ECB Interest Rate Decisions in Focus
A crucial week lies ahead for global markets as May inflation figures in the US are forecast to rise to 4.2%, and the European Central Bank moves toward a 25 basis point rate hike.
Economy
Australian GDP growth slows to 0.3% as high rates and weather disrupt activity
Australia's economic growth slowed sharply to 0.3% in the first quarter of 2026, missing market expectations. Extreme weather disruptions and weak consumer spending dragged on activity, posing a policy dilemma for the Reserve Bank of Australia.
Economy
Australia Records First Trade Deficit Since 2017 Amid Soaring Imports
Australia has recorded its first trade deficit in goods and services since December 2017, driven by a surge in data centre equipment imports and high fuel costs. The March quarter current account deficit widened to A$27.1 billion, setting up a drag on upcoming GDP growth figures.
Economy
Australia's National Minimum Wage Rises 4.75% to Exceed A$1,000 Per Week
Australia's national minimum wage will rise by 4.75% from July 1, 2026, marking the first time the weekly rate has exceeded A$1,000.
Economy
Australia's Unemployment Rate Climbs to 4.5% as Job Market Shows Softening Trend
Australia's unemployment rate climbed to 4.5% in April 2026, representing its highest level since late 2021. The softening of the job market has prompted expectations that the Reserve Bank of Australia will hold interest rates steady.
Economy
Australian Consumer Confidence Recovers Slightly, Remains Historically Low
Australian consumer confidence rose by 2.3 points to 66.4 for the week ending May 18, 2026. Despite the modest recovery, the index remains near historical lows, with only 13% of households considering it a good time to buy major items.
Economy
Australian Federal Budget 2026-27 Unveils Major Tax and Spending Package
The 2026-27 Australian Federal Budget introduces major reforms to negative gearing and capital gains tax while providing a new $250 tax offset for workers. Treasurer Jim Chalmers aims to address housing affordability and intergenerational equity through a $31.5 billion deficit plan.
Economy
Australian Wage Growth Remains Steady as Annual Rate Moderates to 3.3 Per Cent
The Australian Wage Price Index rose by 0.8% in the March quarter 2026, bringing annual wage growth to 3.3%. This steady growth comes as the Reserve Bank of Australia maintains a high cash rate of 4.35% to combat persistent inflation.
Economy
Australia Faces Tightening Cycle as Inflation Persists and GDP Growth Moderates
Australia's 2026 economic outlook remains cautious, with the IMF projecting 2.0% GDP growth and inflation hitting 4.0%. As the RBA prepares for further rate hikes, consumer sentiment has fallen to near-record lows.