The Mid-Year Economic and Fiscal Outlook (MYEFO) provides updated information on the Government’s economic and fiscal outlook since the previous budget. Against a challenging global backdrop, economic growth in Australia is expected to improve over the forecast period. It details measures to provide relief to Australians, repair the budget and reform the economy, identifying a number of national priorities.

Consistent with the requirements to provide updated information on the Government’s fiscal position, the mid-year report contains the following parts. 

• Part 1: Overview – summary information on the key fiscal and economic indicators and outlook and an outline of the key policy decisions taken since the 2024–25 Budget.
• Part 2: Economic outlook – discusses the domestic and international economic forecasts and projections that underpin the budget estimates.
• Part 3: Fiscal strategy and outlook – discussion of the fiscal strategy and outlook, in addition to a summary of the factors explaining variations in the cash flow statement, the operating statement and the balance sheet since the 2024–25 Budget.
• Part 4: Debt statement – information on current and estimated Government debt.
• Part 5: Sensitivity analysis – analysis which illustrates the sensitivity of the forecasts to changes in key variables.
• Part 6: Statement of risks – details of general developments or specific events that may have an impact on the fiscal position, and contingent liabilities which are costs the government may possibly face, some of which are quantified.
• Part 7: Financial statements – financial statements for the general government sector, the public non-financial corporations sector, the total non-financial public sector, the public financial corporations sector and notes to the general government sector financial statements.
• Appendix A: Policy Decisions taken since the 2024–25 Budget
• Appendix B: Supplementary Expense Tables and the Contingency Reserve
• Appendix C: Australia’s Federal Financial Relations

Key findings

• The impact of higher interest rates, cost-of-living pressures and global economic uncertainty has weighed on the Australian economy more than anticipated. 
• Economic growth in Australia is expected to increase from 1.4 per cent in 2023–24 to 1¾ per cent in 2024–25, and then to 2¼ per cent in 2025–26.
• Inflation has moderated substantially in the Australian economy across both headline and underlying measures.
• Over a million jobs have been created in the Australian economy since the middle of 2022.
• Nominal wage growth has eased but is expected to remain above its 10-year pre-pandemic average of 2.7 per cent.