Under Article IV of the International Monetary Fund (IMF’s) Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. In the context of the 2025 Article IV consultation with Australia, the following documents have been released and are included in this report:

• a press release summarising the views of the Executive Board as expressed during its February 9, 2026 consideration of the staff report
• the staff report prepared by a staff team of the IMF for the Executive Board’s consideration on February 9, 2026, following discussions with the officials of Australia on economic developments and policies 
• an informational annex prepared by the IMF staff
• a staff statement updating information on recent developments
• a statement by the alternate executive director for Australia.

The report finds the re-elected Australian Government has laid out a bold reform agenda since taking office in May. Following a period of high inflation, the convergence of the economy toward balance is creating the opportunity to focus on ambitious structural reforms to address medium-term challenges. Delivering on the government’s three main economic goals of boosting productivity, maintaining fiscal sustainability and ensuring economic resilience will help strengthen Australia’s economy amid an uncertain global outlook.

It recommends near-term macro policies should aim to contain price pressures and rebuild buffers, while structural reforms should target closing the productivity gap. 

Key findings

• The Australian economy is managing a soft landing.
• Inflationary pressures have re-emerged in recent months, bringing underlying inflation above 3% in 2025Q3.
• Labour market conditions are easing gradually after a period of tightness, although the unemployment rate, at 4.3%, remains low by historical standards. 
• House prices have rebounded as financial conditions eased, and new dwelling investment has begun to pick up.
• The economic recovery is expected to continue in the near-term. 
• Risks to Australia’s economic outlook are skewed toward slower growth and higher inflation.