Deloitte said falling oil prices may help but rising interest rates, weak consumer and business confidence, stalled housing investment and a persistent cost‑of‑living squeeze have weakened Australia’s growth outlook. It cut its 2026–27 real GDP growth forecast from 1.9% to 1.3% and now expects annual growth below 2% over the next two years, with 2026 at 1.1% — the slowest pace since the early 1990s downturn.

2026-07-07

Deloitte said falling oil prices may help but rising interest rates, weak consumer and business confidence, stalled housing investment and a persistent cost‑of‑living squeeze have weakened Australia’s growth outlook. It cut its 2026–27 real GDP growth forecast from 1.9% to 1.3% and now expects annual growth below 2% over the next two years, with 2026 at 1.1% — the slowest pace since the early 1990s downturn.