Despite a strong expansion in the Australian economy is underway. This is expected to continue over the forecast period, despite the slowdown in global growth. The domestic outlook is supported by the substantial boost to national income from high commodity prices and growth in private consumption and investment.
March quarter 2022. The Australian economy grew 0.8% during the March quarter 2022, and 3.3% over the past year. Strength came from household consumption, which grew 1.5%, and from a record $7.5 billion ramp-up in inventories.
Here’s where things currently stand (at the end of March):
The annual inflation rate in Australia surged to 5.1% in Q1 of 2022 from 3.5% in Q4, surpassing market estimates of 4.6% and marking the highest reading since the introduction of the Goods and Services Tax in the early 2000s, reflecting soaring fuel prices and surging building cost.
The central forecast for 2022 is for headline inflation of around 6 per cent and underlying inflation of around 4¾ per cent; by mid 2024, headline and underlying inflation are forecast to have moderated to around 3 per cent. Economists argue that the 2022 Russian invasion of Ukraine was the principal cause of higher inflation, comprising 3.5% of the 8.6%.
Economists are optimist that Australia in 2025 will be: strong, prosperous, healthy and secure and positioned to benefit all Australians in a rapidly changing world. We are told that Australia will need a diverse economy built on sustainable productivity growth, knowledge-based industries and high value goods and services.
Source: ABC News