Australia’s economy remains strong despite domestic and international pressures, says the treasurer as he prepares for major report cards on the nation’s financial health.
The OECD’s economic outlook for 2025 will show how Australia’s fiscal outlook compares to other advanced economies.
It will be unveiled on Tuesday at the organisation’s ministerial council meeting in Paris by former Australian finance minister Mathias Cormann.
The outlook comes one day before the release of figures showing the domestic economy’s growth in the first three months of 2025.
Economists tip Wednesday’s GDP data for the March quarter to show the economy growing by up to 0.5 per cent.
Treasurer Jim Chalmers said the economy was still buoyant in the face of pressures, such as global trade uncertainty triggered by US President Donald Trump’s tariffs.
“(The) national accounts data is expected to show our economy is resilient in the face of substantial headwinds at home and abroad,” he said.
“Our economy has been hit by natural disasters and we’re not immune to global volatility, but the progress Australians have made together means we are well placed to face this uncertainty.”
Treasury figures have shown a $2.2 billion hit to economic activity following natural disasters such as Tropical Cyclone Alfred and flooding in Queensland and NSW.
The Reserve Bank is set to reveal on Tuesday how it came to its decision to reduce interest rates when it releases its meeting minutes for May.
The central bank dropped the cash rate by 25 basis points to 3.85 per cent, the second time in 2025 interest rates have fallen.
Treasury has estimated a 25 basis point drop in interest rates would save households $5 billion each year, with businesses saving $3 billion annually.
The Reserve Bank’s assistant governor Sarah Hunter will also address the state of Australia’s economy against the backdrop of global uncertainty in a speech to the Economic Society of Australia in Brisbane on Tuesday.
Source: AAP
