Labor’s 2nd Term Begins Under Shadow of Productivity, Housing Crunch: Economists

Economists have weighed in and say the only upside to the economy is that inflation has moderated.

Prime Minister Anthony Albanese speaks to the media in Canberra, Australia on May 9, 2025. Hilary Wardhaugh/Getty Images

With its re-election secured, Labor government now faces the hard reality of dealing with Australia’s structural economic problems.

Economists warn that beneath slightly easing inflation figures lies entrenched issues: stagnant productivity, unaffordable housing, and a suffocating business environment.