Australia is entering its most extended period of sub-par economic expansion since the early 1990s recession, according to a new assessment by Deloitte Access Economics.
The consultancy warns that structural vulnerabilities are intensifying, with higher unemployment and stagnant wage growth likely to define the economic landscape over the next two years.
The forecast underscores a deepening malaise in the Australian economy, where growth has failed to gain traction despite earlier expectations of a post-pandemic rebound.
Deloitte’s analysis suggests that the current slowdown is not merely cyclical but rooted in longer-term structural issues that are proving difficult to resolve through conventional monetary policy alone.
This grim outlook adds to growing concerns among investors and policymakers about the resilience of the Australian consumer.
With household spending under pressure and labor market conditions deteriorating, the Reserve Bank of Australia faces a complex balancing act.