Economy Strong but Slowdown on Horizon, IMF Warns

The International Monetary Fund (IMF) has warned a slowdown is on the cards for Australia’s economy, despite the recovery post-COVID being stronger than most other nations. In its latest assessment of Australia’s finances, the global body said while the economy was performing well, growth was set to weaken, fuelled by cost of living pressures and a slowdown in productivity. While the IMF said Australia’s inflation levels had peaked, they remained stubbornly high, estimating it would take another two years for it to return to the Reserve Bank’s target band of between two and three percent. It forecast that economic growth was expected to slow to 1.8 percent year on year in 2023, before dropping again to 1.4 percent in 2024....