This snapshot offers an overview of Australia's economic situation, GDP and inflation projections, growth prospects and structural reform priorities. It highlights major economic trends and key policy recommendations for sustainable and inclusive growth. It includes a special feature on revitalising competition in the Australian economy.

The government’s Competition Review has taken promising steps towards revitalising competition, but additional measures, including strengthened competition policy enforcement and reduced regulatory fragmentation across states, are needed.

Key findings

• Australia enjoys high living standards, but experienced weak growth in recent years and real disposable incomes declined markedly.
• The economy is normalising, but long-standing challenges of slow productivity growth, strained housing affordability and high carbon emissions should be addressed.
• Competition has waned across the economy over the past two decades, as business dynamism has declined and market concentration and profit margins have risen.
• With economic growth returning to potential and inflation expected to stabilise within the target range, fiscal policy should focus on steadily reducing the budget deficit while improving the efficiency of the tax system.