Australia: 2019 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Australia
IMF Staff Country Reports, March 5, 2020
Source details
- Canonical URL
- Australia: 2019 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Australia
Other formats
Bibliographic details
- Published: March 5, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513536088.002
Near-term growth and recovery outlook
- Continued gradual economic recovery is expected, subject to downside risks.
- Growth should continue to recover in 2020, but it will take time for the economy to return to potential.
- Growth is projected to recover gradually in the near term, supported by:
- monetary policy easing,
- tax cuts,
- the recovery of housing markets.
Inflation and economic slack
- Despite sound macroeconomic fundamentals and policy management, growth remains below potential and inflation is slightly below its target range.
- Inflation is forecast to remain slightly below the target range until 2021 due to persistent economic slack.
Risks and upside scenarios
- Downside risks remain elevated and have increased recently due to:
- the widespread bushfires,
- the coronavirus outbreak,
- a renewed escalation of the China–US tensions,
- weaker private consumption.
- On the upside, looser financial conditions could re-accelerate asset-price inflation, boosting private consumption but also adding to medium-term vulnerabilities.
Key thematic focus areas (as stated)
- Financial institutions
- Housing; Housing prices; house price inflation; housing supply reform
- Mortgages
- Inflation; Prices; CPI expenditure weight
- National accounts; Private investment
- Fiscal policy; monetary policy; liability positions vis-à-vis nonresident; infrastructure Australia
Source: Australia: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Australia.
Content in this bundle
- 1ausea2020001