IMF Trims Australia's 2027 Growth Outlook to 1.6%

The IMF trimmed Australia's 2027 real GDP growth forecast to 1.6%, down 0.1 points, on rising odds of another Reserve Bank rate hike. It still expects 1.9% growth in 2026. Inflation remains the central challenge, with weak productivity — output per worker — limiting potential. Further tightening may be needed if price pressures persist.