Economy Shows Resilience Despite Budget Pressures
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Household budgets are under severe strain from high inflation and interest rates, but the economy has shown resilience with strong job growth.
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The government forecasts an unexpected budget surplus and positive GDP growth in 2023-24. Exports are seen making a bigger contribution.
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Economists expect inflation to moderate and the RBA to start cutting interest rates in 2024 to support growth.
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Record high migration has boosted population and economic growth, but lower planned intakes may ease pressure on housing.
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Government infrastructure spending and the expanding care economy should aid job creation in 2024. The RBA aims to curb inflation without severely damaging growth.