The Daily Aus Will our economy be better next year?
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Dec 17, 2024 The conversation dives into the unpredictability of economic forecasting, comparing it to astrology. As Australia faces economic challenges like inflation and housing affordability, there’s cautious optimism for 2025. Insights from a senior economist reveal how global events shape local markets. With expectations of declining inflation and rising wages, Australians may soon see enhancements in living conditions. The dialogue also considers the broader impacts of U.S. policies and the electoral significance of cost-of-living issues.
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2024 Economic Overview
- 2024 was a rough economic year with slow growth, impacting household spending.
- Per capita, the Australian economy actually contracted, with only population growth contributing to overall growth.
Global Impact on Australian Economy
- Global factors, like supply chain issues, the war in Ukraine, and climate change, significantly impacted the Australian economy.
- These international factors contributed more to household economic struggles than domestic issues.
Reasons for Optimism in 2025
- Despite global uncertainties like Trump's policies, the easing of inflation offers hope for improvement in 2025.
- Lower inflation could lead to reduced interest rates and increased economic activity.