Journal article

The Australian Economy in 2024–2025: Living and Housing Affordability

G Lim, V Nguyen, T Robinson, S Tsiaplias

Australian Economic Review | Published : 2025

Abstract

The economy grew at a well below-trend pace in 2023/2024. Inflation fell, and the unemployment rate edged higher, but these changes were not sufficient to convince the Reserve Bank of Australia to start cutting the cash rate. In 2024, the federal Budget included cost-of-living financial support, as well as measures to support housing affordability, but living standards continued to slip as real GDP per capita fell. Overall, the Misery Index for Australia remains high and ongoing uncertainty about the United States and Chinese economies are downside risks to the outlook for 2024/2025.