Recession Unlikely in Australia, Says IMF
The International Monetary Fund expects Australia to dodge a recession but has downgraded its expectations for growth next year.
The United Nations agency anticipates growth slowing to 1.7 per cent in 2023—less than the 1.9 per cent forecast in its world economic outlook released last month.
In its annual health check on the Australian economy, the IMF pointed to Australia’s resilient domestic buffers to economic headwinds, including decent household savings.
“Between the slowing global growth and some still-resilient domestic buffers, Australia is on a narrow path for a soft landing,” the report said.
But Australia is not out of the woods—a larger-than-expected slowdown in China’s growth would put the nation’s exports at risk, and higher inflation and wage growth domestically could prompt further interest rate rises from the central bank….