After a period of strong growth, the economy is now slowing, as anticipated in the Half Year Economic and Fiscal Update 2022 (Half Year Update). Annual consumer price inflation peaked at 7.3% in June 2022, and the Reserve Bank lifted interest rates to reduce strong domestic demand. Activity is now weakening and will be soft throughout 2023. However, compared to the Half Year Update, the Treasury now expects a more moderate slowdown in activity over the next 12 months. Growth slows to 1.0% in the June 2024 year, and averages 2.7% thereafter. Continued strength in tourism, stronger growth in net migration, rebuild ... (full story)