Deloitte Cuts Australia Growth to 1.3% as Average Incomes Fall 0.6%
Updated
Updated · The Nightly · Jul 7
Deloitte Cuts Australia Growth to 1.3% as Average Incomes Fall 0.6%
3 articles · Updated · The Nightly · Jul 7
Summary
Deloitte Access Economics said Australia’s economy will slow from 2.3% to 1.3% this financial year, with average after-tax incomes dropping 0.6% and per-capita output already shrinking.
A 0.3% rise in GDP in the March quarter was not enough to offset population growth, while tariffs, volatile energy prices and inflation added to weak underlying momentum.
The report argues state and federal governments have failed to pursue productivity-boosting reforms, citing weak investment, high taxes, workplace rules and slow project approvals.
Treasurer Jim Chalmers says the government has a broad agenda including tax cuts, higher wages and cost-of-living relief, but Deloitte’s outlook points to another year of falling living standards.
If the forecast holds, Australia would endure its longest stretch of sub-2% growth since the 1990s recession, deepening pressure for a broader economic reform debate.