Just before stepping on stage at the South Australian Local Government Financial Management Group conference, I caught a fascinating economic update by Taylor Nugent, Senior Economist at NAB.
Key takeaways? Australia is looking pretty strong 💪 — even in light of Trump’s tarriffs.
🔹 Inflation is easing, and the RBA is expected to continue cutting rates, albeit slowly.
🔹 The AUD could bounce back to $0.70 by late 2026.
🔹 Real incomes are growing again after taking a hit from inflation.
🔹 Unemployment is forecast to stabilise around 4.25%.
🔹 Population growth is returning to pre-pandemic norms—with regional shifts settling down.
Global risks like US tariffs (1% of GDP, 5% of exports) could impact us via our key Asian trading partners. But Australia may benefit from a competitive edge if markets turn to us for goods—though global demand will be the wild card.
Business profitability which took a hit during the post-pandemic readjustment remains a bit tricky, but some of the worst pressures (like supply constraints) are easing.
All in all, we’re on track for a soft landing and sustained, moderate growth.
#Economy #Australia #EconomicUpdate #Leadership #FutureOfWork #LocalGovernment #Foresight #BusinessTrends
Australia’s Economy: Easing Inflation, Growing Incomes, and a Strong Future
Kim Seeling Smith
Kim Seeling Smith is an international speaker, trainer, coach, mentor and author on Career Management and Employee Retention issues. Through her company, Ignite Global, Kim helps organizations build healthy work environments and increase employee engagement and productivity in our digitally connected, globally oriented world.
Kim Seeling Smith
Kim Seeling Smith is an international speaker, trainer, coach, mentor and author on Career Management and Employee Retention issues. Through her company, Ignite Global, Kim helps organizations build healthy work environments and increase employee engagement and productivity in our digitally connected, globally oriented world.
