OECD Warns of Sluggish Australian Economic Growth Amid Global Trade Concerns
OECD Warns of Sluggish Australian Economic Growth Amid Global Trade Concerns
0
The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
The Organisation for Economic Co-operation and Development (OECD) has issued a warning about a potential slowdown in Australia's economic growth over the next two years.
This prediction comes against the backdrop of heightened global uncertainty, spurred by trade policies introduced by US President Donald Trump.
The OECD projects Australia’s GDP to rise to 1.9% in 2025 but slip slightly to 1.8% in 2026, falling short of earlier expectations laid out in their December report.
Global economic growth is similarly anticipated to decelerate. OECD forecasts a reduction in growth from 3.2% in 2024 to 3.0% in 2026, attributing this trend to increased trade barriers among major economies and broader geopolitical tensions. The report specifically highlights that continued changes in trade policies, if maintained, could dampen global growth prospects and heighten inflationary pressures.
The potential slowdown has significant implications for both consumers and businesses within Australia. If growth rates dwindle, this could affect employment, wages, and investment levels across the country. Additionally, as higher trade barriers threaten global trade volumes, Australian exporters may face shrinking markets abroad, potentially putting additional pressure on domestic economic growth.
The report indicates that inflation, while expected to moderate gradually, could still surpass targets set by central banks, including the Reserve Bank of Australia. This poses a challenge for policymakers aiming to balance growth with inflation control. RBA Governor Michele Bullock emphasized the need to be vigilant against any resurgence of inflationary pressures in Australia.
: Experts suggest keeping a close eye on international trade developments, particularly the bilateral tariffs between major economies such as the US, Canada, and Mexico. If these tariffs were to be rolled back or applied more narrowly, it could lead to a more favourable growth and inflation outlook globally and in Australia.
The Reserve Bank of Australia has room to manoeuvre, given the current trajectory of moderating inflation. There’s potential for further interest rate reductions, which could stimulate domestic consumption and investment. Nevertheless, the caution remains as trade policy uncertainties continue to cast a long shadow over Australia’s economic future.
As policymakers navigate these challenging waters, strategic economic management will be crucial in cushioning Australia from external shocks and ensuring a steady growth trajectory amid a complex global landscape.
Published:Tuesday, 18th Mar 2025 Source: Paige Estritori
Please Note: If this information affects you, seek advice from a licensed professional.
KTM AG, the renowned Austrian motorcycle manufacturer, has successfully secured €600 million in funding to meet its debt obligations, marking a significant milestone in the company's ongoing financial restructuring. This development comes after a period of financial turbulence that led KTM into self-administration and a comprehensive restructuring process. - read more
Peter Stevens Motorcycles, a cornerstone of Australia's motorcycle retail industry since 1970, has entered voluntary administration, revealing debts exceeding $65.9 million. This development casts uncertainty over the future of the company's 400 employees and its extensive customer base. - read more
The Australian motorcycle market has experienced a modest decline in sales during the first nine months of 2025, with a 2.2% decrease compared to the same period in 2024. According to data from the Federal Chamber of Automotive Industries (FCAI), a total of 63,988 motorcycles were sold between January and September 2025. - read more
Harley-Davidson, the iconic American motorcycle manufacturer, is reportedly in discussions to sell a stake in its financing unit, Harley-Davidson Financial Services (HDFS). This move could have significant implications for motorcycle financing options available to consumers. - read more
Whether you're an experienced rider or just starting your journey in the world of motorcycling, understanding the ins and outs of motorcycle financing is crucial. - read more
A sense of boundless excitement often accompanies the thought of buying your very first motorcycle. It's more than just a purchase; it's an entry pass to a lifestyle charged with freedom, wind in your hair, and the open road calling your name. The thrill of ownership however, comes with its fair share of responsibilities, chief among them being the financial commitment it demands. - read more
Motorcycle financing is a convenient way for enthusiasts to purchase their dream bikes without having to pay the full cost upfront. However, understanding the potential pitfalls and avoiding them is crucial to ensure a smooth and cost-effective financing experience. - read more
Feeling the wind rushing past you as you glide down the open road, with the growl of the engine as your soundtrack – the thrill of motorcycle ownership is a unique blend of freedom, excitement, and passion. In Australia, where the vistas are as captivating as the sense of adventure, owning a motorcycle is not just about transportation; it's a way to experience the landscape to its fullest. - read more
Start Here
Knowledgebase
Personal Loan: A personal loan is a loan provided to an individual or individuals (as opposed to a business) and that can be generally be used for a variety of purposes subject to the approval of the lender.
