Australia: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Australia

International Monetary Fund

No 2024/011, IMF Staff Country Reports from International Monetary Fund

Abstract: The 2023 Article IV Consultation discusses that 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. Economic activity is projected to further decelerate in the near term, as the tightening of monetary conditions continues to take hold. Short-term policies should focus on navigating the economy to a soft landing, by bringing inflation back to target, while maintaining financial stability. Policy coordination will be critical. Structural reforms must address declining productivity growth and challenges related to ageing and put the economy on the path for a green transition. Structural policies should be centered on promoting productivity growth. Continued investment in digital infrastructure, more direct government funding for research and development, and more open foreign direct investment regime coupled with labor market and tax reforms are among the key structural policies.

Keywords: CPI expenditure weight; state government leader; CPI indicator; Mid-Year Economic and Fiscal Outlook; fiscal policy coordination; employment white paper roadmap; Inflation; Housing; Productivity; Housing prices; Global (search for similar items in EconPapers)
Pages: 102
Date: 2024-01-18
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