Part 5/8:
While external factors such as China's economic orientation and the broader geopolitical landscape are significant, the domestic narrative remains central to Australia’s economic outlook. Sluggish growth persists locally, although there are signs that improvements may occur, bolstered by increased fiscal stimulus from the government.
The push for public demand ahead of the elections in May 2025 may also play a pivotal role in supporting economic momentum. Yet, a crucial concern remains the interplay between growth and inflation. If growth accelerates while inflation levels remain elevated, this delays the RBA's ability to lower interest rates.