## Australia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Australia

_IMF Staff Country Reports, February 21, 2019_

## Source details

**Canonical URL:** [Australia: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Australia](https://www.imf.org/en/publications/cr/issues/2019/02/13/australia-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-46612)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/02/13/australia-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-46612/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/02/13/australia-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-46612/index.json)
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## Bibliographic details
- Published: February 21, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484399019.002

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### Executive summary and economic outlook
- Australia experienced only a minor downturn after the end of the mining investment and commodity price boom, but the adjustment and rebalancing has been slow.
- The economy faces below-target inflation and low wage growth amid economic slack.
- Baseline forecasts entail a soft landing in the housing market, but a stronger market correction remains a risk.
- Near-term risks to growth are to the downside, mirroring the global risk picture; the impact of shocks could be amplified by high household debt.
- IMF staff welcomes the authorities’ continued commitment to working actively with international partners to promote the global multilateral trading system.
- Macroeconomic policy support should remain in place until full employment and inflation in the target range are firmly within reach.

### Macro-financial vulnerabilities
- High household debt and low housing affordability have become major concerns after a recent housing boom.
- The baseline assumes a soft landing in housing, but a stronger market correction is identified as a significant risk that could interact with household leverage.

### Policy priorities and structural agenda
- The structural policy agenda appropriately targets:
  - innovation,
  - infrastructure gaps,
  - tax reform,
  - energy policy.
- Progress has been limited in some areas.
- Policy recommendation: maintain macroeconomic policy support until labor market and inflation outcomes meet targets.

### Key subject areas and keywords (as listed)
- Subject: Banking, Housing, Housing prices, Inflation, Infrastructure, Labor, Labor markets, National accounts, Prices
- Keywords: ABS implementation, Asia and Pacific, child care policy initiative, CR, Global, government, Housing, housing market, housing market correction, Housing prices, Inflation, Infrastructure, ISCR, Labor markets, liability positions vis-à-vis nonresident, monetary policy, state, trend estimate

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## Content in this bundle

- **Australia’s Housing Price Correction in Perspective**
  - [Australia’s Housing Price Correction in Perspective (Markdown version)](/-/media/files/publications/cr/2019/1ausea2019008.pdf.md){rel="alternate" type="text/markdown"}
  - [Australia’s Housing Price Correction in Perspective (PDF)](/-/media/files/publications/cr/2019/1ausea2019008.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2019/02/13/australia-2018-article-iv-consultation-press-release-staff-report-and-statement-by-the-46612_