Australia

Context. Australia has enjoyed a comparatively robust economic performance while adjusting to the end of the large mining boom of the 2000s. But the economy has not yet returned to full employment, and inflation is below its target range. Housing market imbalances and high household debt have become important vulnerabilities. As in other advanced economies, average growth has been lower since the Global Financial Crisis. Outlook and risks. With stronger global economic prospects, recent strong employment growth, and higher infrastructure spending as a catalyst, conditions for an acceleration in activity and above-trend growth seem in place. Near-term risks to growth are broadly balanced, but large negative shocks, most likely external, and their interaction with domestic housing markets remain concerns on the downside.