Economic Outlook for 2025

The economic forecast for 2025 suggests a cautious recovery following a challenging 2024. While there are expectations of rate cuts from the Reserve Bank, the recovery is not anticipated to be rapid, with improvements likely manifesting predominantly in the latter half of the year. Economists recognize that household and business adjustments to the rate cuts may experience delays, particularly due to the typical 18 to 24-month lag in monetary policy effects. However, there is optimism that the recent rate cuts will eventually stimulate economic activity as households feel encouraged to engage in property transactions and investment.