Analysts at Westpac see a material slowing in the year ahead for the Australian economy, centred on: housing and the consumer; uncertainty around the upcoming Federal election; and a less favourable international backdrop.
Key Quotes
“The strength of current momentum and ongoing support from several key positives – population inflows, a sustained period of strong rises in government spending, and a lower Australian dollar – means the economy is relatively well placed to maintain positive growth despite the more intense headwinds.”
“Real GDP growth is expected to slow from 3.3% in 2018 to 2.7% in 2019 before lifting back to 3.0% in 2020. Our forecasts stand in contrast to the RBA’s which have growth at 3.5% this year and a still well above trend 3.25% in 2019.”
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