Five things you need to know about the Australian economy

Key points

- The Australian economy grew solidly over the last year.
- While recession remains very unlikely, the combination of a slowing housing cycle, constraints on consumer spending and still subdued business investment will likely see growth slow going forward to around 2.5-3%.
- As a result, spare capacity is likely to remain significant, keeping wages growth and inflation low.
- We don’t expect the RBA to start raising rates until late 2020 at the earliest and the risk remains significant that the next move could be a cut.