The Australian economy is proving to be robust, but inflation, interest rate rises and a slowing in the global economy are all significant headwinds. Structural challenges such as the need to quickly transition to net zero and deal with demographic change plus acute problems related to housing availability are also occupying business and policy minds.
Australia has some solid fundamentals with workforce participation remaining close to a record high; commodity prices up again and healthy households balance sheets providing a buffer. This presentation reflects on how 2023 is developing and whether the buffers are wearing thin as we look ahead to challenges of the coming 12 months.