;
Growth
- RBA rate hikes and higher fuel prices due to the Middle East conflict will weigh on the Australian economy
- Households remain supported by solid labour market conditions, ongoing population growth and modest tax cuts. Savings buffers will help consumers absorb higher prices and mortgage rates that will dampen real income growth
- Higher capex on AI & data centres and renewable energy & storage will help cushion weaker business investment across industries most heavily impacted by the rise in diesel prices
While the Iran conflict presents a downside risk to growth, higher prices for Australia’s LNG exports will help to soften the impact