Australia: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Australia
IMF Staff Country Reports, January 18, 2024
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- Australia: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Australia
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Bibliographic details
- Published: January 18, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400262364.002
Macroeconomic outlook and near-term projections
- Australia’s post-pandemic recovery remained strong.
- Growth is weakening on the heels of tighter macroeconomic policies and financial conditions.
- Inflation has peaked, but it remains persistently high.
- Economic activity is projected to further decelerate in the near term, as the tightening of monetary conditions continues to take hold.
Short-term policy priorities
- Focus on navigating the economy to a soft landing by:
- Bringing inflation back to target.
- Maintaining financial stability.
- Emphasize policy coordination across relevant authorities.
Structural challenges and reform priorities
- Structural reforms must address:
- Declining productivity growth.
- Challenges related to ageing.
- The transition to a greener economy.
- Structural policy directions highlighted:
- Promote productivity growth as the central aim.
- Continued investment in digital infrastructure.
- More direct government funding for research and development.
- A more open foreign direct investment regime.
- Complementary labor market and tax reforms.
Content in this bundle
- 1. Australia’s Savings Rate