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Executive Board Concludes 2023 Article IV Consultation with Australia
Australia’s post-pandemic recovery remained strong. However, growth is weakening on the heels of tighter macroeconomic policies and financial conditions. While inflation has peaked, it remains persistently high. The labor market shows signs of easing, and the positive output gap is narrowing. Increased cost of living is weighing on household consumption. The economy remains resilient in the near term but confronts a sustained slowdown in productivity growth. Risks to the growth outlook are balanced, with upside risks stemming from robust immigration. Financial stability risks remain contained despite pockets of ... (full story)