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In our latest update, we break down the key trends from the RBA's June 2024 Chart Pack, shedding light on the current state of Australia's economy and financial markets.


The Reserve Bank of Australia's (RBA) latest Chart Pack offers a comprehensive view of the economic landscape, providing valuable insights into global and domestic economic conditions, household and business sectors, labor markets, and interest rates with a comprehensive Australia economic update June 2024.

Global Economy

Australia's economy is deeply connected to global markets, and it’s important to monitor how our major trading partners are performing. Despite forecasts of potential recessions last year, global economies have shown resilience. The International Monetary Fund (IMF) predicts steady global growth at 3.2% for 2024 and 2025, though geopolitical tensions and high inflation remain challenges.

Domestic Economic Highlights

Australia’s economy continues to grow robustly, contrary to earlier recession fears.

However, this rapid growth has prompted the RBA to maintain a cautious stance on interest rates to manage inflation, which has peaked but is declining slowly.

Key Statistics:

  • Population Growth: As of December 2023, Australia's population reached 26.97 million, with a record growth of 651,200 people over the past year.

  • Interest Rates: The RBA's 13 interest rate hikes have had limited impact on spending so far. Rates are expected to remain high in the short term to control inflation.

  • Property Market: Australia's residential property market is valued at $10.7 trillion, with only $2.3 trillion in debt. Half of homeowners have no mortgage, underscoring the strong equity base.

Household Sector

Despite rising interest rates and inflation, Australian households continue to spend, particularly on services. However, consumer confidence is low, reflecting concerns over economic conditions. Housing prices and rents are rising, adding pressure to household budgets.

Key Trends:

  • Household spending increased by 3.4% over the year.

  • Non-discretionary spending rose by 5.8%, driven by health and vehicle expenses.

  • The savings ratio has dropped below pre-pandemic levels as households dip into reserves.

Business Sector

Australia’s business sector remains resilient, though facing softening consumption and investment growth. Tightening government expenditures and high debt costs are notable concerns, but business investment appears to be stabilising.

Labor Market:

  • Unemployment fell to 4.0%, with significant job vacancies indicating a tight labor market.

  • The participation rate has increased, reflecting a higher active workforce.

Interest Rates

Interest rates, set by the RBA, remain a critical tool for managing economic growth and inflation. The current cycle suggests we are at the peak of interest rate increases, but rates are not expected to fall immediately.

Future Outlook:

  • Consumer confidence is likely to rise as inflation peaks and interest rates stabilise.

  • The government’s housing plan aims to address the significant housing shortfall, though high construction costs pose challenges.

Final Thoughts

Australia’s economic landscape is evolving, with strong population growth and a robust property market highlighting key strengths. However, challenges such as inflation, interest rates, and housing shortages require careful management.

Stay tuned for more updates and insights into how these trends impact the property market and broader economic conditions.

DMC Property Advisory


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