Australia : 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Australia.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Asia and Pacific Dept.

Series:

IMF Staff Country Reports; Country Report ; No. 2020/068

IMF Staff Country Reports

Language:

English

Subjects (All):

Banks and banking.

Physical Description:

1 online resource (79 pages).

Other Title:

Australia

Place of Publication:

Washington, D.C. : International Monetary Fund, 2020.

Summary:

This 2019 Article IV Consultation with Australia discusses that a continued gradual economic recovery is expected, subject to downside risks. Growth should continue to recover in 2020, but it will take time for the economy to return to potential and restore inflation to within the target range. Despite sound macroeconomic fundamentals and policy management, growth remains below potential and inflation is slightly below its target range. Growth is projected to recover gradually in the near term, supported by monetary policy easing, tax cuts, and the recovery of housing markets. Nonetheless, inflation is forecast to remain slightly below the target range until 2021 due to persistent economic slack. Downside risks, including a renewed escalation of the China–US tensions and weaker private consumption, remain elevated and have increased recently due to the widespread bushfires and the coronavirus outbreak. On the upside, looser financial conditions could re-accelerate asset-price inflation, boosting private consumption but also adding to medium-term vulnerabilities.

Contents:

Contents

CONTEXT

A FRAGILE RECOVERY, SUBJECT TO DOWNSIDE RISKS

A. Recent Developments

B. Outlook

C. Risks

D. Authorities' Views on Outlook and Risks

SUPPORTING THE RECOVERY WITH ACCOMODATIVE MACROECONOMIC POLICIES

ENHANCING FINANCIAL SECTOR RESILIENCE

NAVIGATING THE SWIFT RECOVERY IN HOUSING MARKETS

FOSTERING STRONG, INCLUSIVE AND SUSTAINABLE GROWTH

STAFF APPRAISAL

BOXES

1. Bushfires and Their Macroeconomic Impact

2. Why Has Wage Growth Been Low in Australia

3. House-Prices-at-Risk in Australia

4. Housing Prices and Affordability

FIGURES

1. Australia's Growth Has Remained Below Potential

2. The Current Account Improved After Rebalancing and a Terms-of-Trade Rebound

3. The Housing Market Has Stabilized

4. Monetary Policy Has Been Supportive

5. Public Finances Focused on Infrastructure and Lowering Debt

6. The Banking System Remains Strong

7. Financial Market Indicators: New Lows for Yields and Spreads

8. Interconnectedness and Spillovers

9. Australia's Macro-Structural Position

10. Australia in International Comparison

TABLES

1. Main Economic Indicators, 2015-2025

2. Fiscal Accounts, 2014/15-2024/25

3. Balance of Payments, 2015-2025

4. Monetary and Financial Sector, 2015-2025

5. Selected Financial Soundness Indicators of the Banking Sector

ANNEXES

I. External Sector Assessment

II. Why Has Business Investment Slowed Down in Australia?

III. Risk Assessment Matrix

IV. The Impact of U.S.-China Trade Tensions on Australia

V. Debt Sustainability Analysis

VI. Selected Key Macroprudential Policy Measures, 2014-19

VII. Follow-Up on Key Recommendations of the 2018 FSAP.

Notes:

Includes bibliographical references.

Description based on publisher supplied metadata and other sources.

ISBN:

9781513536101

1513536109