IMF downgrades Australia's economic growth forecast

The International Monetary Fund has downgraded Australia's economic growth forecast for the second time this year, predicting growth of 1.9% for 2026 with subdued conditions continuing into 2027. High interest rates, cost of living pressures, slowing housing investment, productivity issues, and Middle East energy price shocks are contributing to the economic cooling. Despite the slowdown, Australia is expected to grow faster than several other advanced economies, with the subdued growth potentially helping to bring inflation under control and strong investment in AI and data centres offering future productivity gains.See omnystudio.com/listener for privacy information.