After years of consistent growth, the outlook for Australian economic growth is unclear. This increased uncertainty has been driven by the recent commodity price correction, coupled with the continued strength of the Australian dollar, albeit having moderated recently. It is considered that the construction phase of the mining boom is now reaching an end, with several large projects being placed on hold or having been deferred indefinitely.
In response to the higher exchange rates and only moderate inflation, the RBA moved to cut the interest rate to 2.75%, the lowest rate ever recorded. These lower interest rates have boosted consumer confidence somewhat; however, business and consumer confidence remain low overall.
Source : Cushman & Wakefield