IMF Warns of Slower Growth for Australia, New Zealand

IMF Chief Economist Pierre-Olivier Gourinchas said the situation was ‘not as bad as feared, but worse than we need.’

A view of the International Monetary Fund (IMF) logo at its headquarters in Washington, D.C., on Nov. 24, 2024. Benoit Tessier/File Photo/Reuters

Australia’s economy is expected to slow over the next two years as global trade tensions and protectionist policies drag on growth, according to the International Monetary Fund’s (IMF) latest World Economic Outlook.

The IMF now forecasts Australia’s economy to expand by 1.8 percent in 2025 and 2.1 percent in 2026, a small downgrade from its July projection.