## Australia: 2019 Article IV Consultation — Press Release; Staff Report; and Statement by the Executive Director for Australia

_IMF Staff Country Reports, March 5, 2020_

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## Bibliographic details
- Published: March 5, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513536088.002

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### 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.*

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_Source: https://www.imf.org/en/publications/cr/issues/2020/03/03/australia-2019-article-iv-consultation-press-release-staff-report-and-statement-by-the-49241_