Business Loans Australia :: News
SHARE

Share this news item!

OECD Warns of Sluggish Australian Economic Growth Amid Global Trade Concerns

OECD Warns of Sluggish Australian Economic Growth Amid Global Trade Concerns

OECD Warns of Sluggish Australian Economic Growth Amid Global Trade Concerns?w=400
The Organisation for Economic Co-operation and Development (OECD) has issued a warning about a potential slowdown in Australia's economic growth over the next two years.
This prediction comes against the backdrop of heightened global uncertainty, spurred by trade policies introduced by US President Donald Trump.
The OECD projects Australia’s GDP to rise to 1.9% in 2025 but slip slightly to 1.8% in 2026, falling short of earlier expectations laid out in their December report.

Global economic growth is similarly anticipated to decelerate. OECD forecasts a reduction in growth from 3.2% in 2024 to 3.0% in 2026, attributing this trend to increased trade barriers among major economies and broader geopolitical tensions. The report specifically highlights that continued changes in trade policies, if maintained, could dampen global growth prospects and heighten inflationary pressures.

The potential slowdown has significant implications for both consumers and businesses within Australia. If growth rates dwindle, this could affect employment, wages, and investment levels across the country. Additionally, as higher trade barriers threaten global trade volumes, Australian exporters may face shrinking markets abroad, potentially putting additional pressure on domestic economic growth.

The report indicates that inflation, while expected to moderate gradually, could still surpass targets set by central banks, including the Reserve Bank of Australia. This poses a challenge for policymakers aiming to balance growth with inflation control. RBA Governor Michele Bullock emphasized the need to be vigilant against any resurgence of inflationary pressures in Australia.

: Experts suggest keeping a close eye on international trade developments, particularly the bilateral tariffs between major economies such as the US, Canada, and Mexico. If these tariffs were to be rolled back or applied more narrowly, it could lead to a more favourable growth and inflation outlook globally and in Australia.

The Reserve Bank of Australia has room to manoeuvre, given the current trajectory of moderating inflation. There’s potential for further interest rate reductions, which could stimulate domestic consumption and investment. Nevertheless, the caution remains as trade policy uncertainties continue to cast a long shadow over Australia’s economic future.

As policymakers navigate these challenging waters, strategic economic management will be crucial in cushioning Australia from external shocks and ensuring a steady growth trajectory amid a complex global landscape.

Published:Tuesday, 18th Mar 2025
Source: Paige Estritori

Share this news item:

Finance News

Australian Fund Managers Brace for Impacts of US Tariff Policy Australian Fund Managers Brace for Impacts of US Tariff Policy
22 Apr 2025: Paige Estritori

The imposition of US tariffs under former President Donald Trump's administration is predicted to challenge Australia's publicly listed fund managers, according to analysis by research and ratings firm Morningstar. Shaun Ler, an equity analyst with Morningstar, suggests that these financial entities might experience a gradual decline in earnings over the medium term due to reduced cyclical benefits from interest rate cuts and increased market volatility. - read more
Sydney's Housing Market Reaches Record $2 Million Sydney's Housing Market Reaches Record $2 Million
17 Apr 2025: Paige Estritori

In a landmark moment for Sydney's real estate market, the city’s median asking price for houses has surpassed the $2 million mark, hitting $2,012,000 as of 15 April, according to SQM Research. This figure includes Greater Sydney regions such as the Blue Mountains and Central Coast. The development was confirmed by SQM's managing director, Louis Christopher. - read more
Institutional Investors Maintain Course Amid Escalating Geopolitical Risks Institutional Investors Maintain Course Amid Escalating Geopolitical Risks
17 Apr 2025: Paige Estritori

Institutional investors across the globe are largely standing firm despite acknowledging the rising geopolitical risks impacting their portfolios. Recent research by investment consultancy firm Bfinance, involving over 160 institutional investors worldwide, reveals that most entities have not adjusted their strategic investments amidst the current economic turbulence driven by trade conflicts. - read more
Acadian Launches Diversified Emerging Markets Equity Fund for Australian Investors Acadian Launches Diversified Emerging Markets Equity Fund for Australian Investors
16 Apr 2025: Paige Estritori

Acadian Asset Management, renowned for its quantitative investment strategies, has introduced a new emerging markets equity fund targeting Australian wholesale investors. This fund is meticulously crafted to balance risk without compromising on long-term returns. - read more
Bank of Queensland Warns of Rising Bad Loans Amid Economic Uncertainty Bank of Queensland Warns of Rising Bad Loans Amid Economic Uncertainty
16 Apr 2025: Paige Estritori

The Bank of Queensland, a prominent mid-tier lender, has issued a cautionary note about an anticipated rise in bad loans due to ongoing economic uncertainty. Despite this warning, the bank's shares experienced an unexpected surge. - read more
ASIC to Name Financial Licensees in New Breach Transparency Initiative ASIC to Name Financial Licensees in New Breach Transparency Initiative
14 Apr 2025: Paige Estritori

The Australian Securities and Investments Commission (ASIC) has proposed a new regulatory framework aimed at increasing transparency in the financial industry by identifying financial planning licensees who report breaches. Revealed in a consultation paper, CP 383, this proposal would see ASIC start publishing Reportable Situations (RS) and Internal Dispute Resolution (IDR) data at both firm and industry levels, including the names and licence numbers of the offending companies. - read more
Australia Faces Prolonged Household Recession Despite Persistent Challenges Australia Faces Prolonged Household Recession Despite Persistent Challenges
14 Apr 2025: Paige Estritori

The latest figures from the Australian Bureau of Statistics (ABS) indicate a deepening recession for households, as revealed by the fourth quarter of 2024 national accounts. For the eighth consecutive quarter, real per capita household consumption has declined, marking an unprecedented stagnation for Australian households. - read more


Business Loans Articles

Bridging the Gap: Accessing Capital Through Start-Up Loans in Australia Bridging the Gap: Accessing Capital Through Start-Up Loans in Australia
Embarking on a startup journey in Australia is both thrilling and challenging. You have a groundbreaking idea, but starting a business involves numerous hurdles—capital being a primary one. This is where business loans come into play. They are crucial lifelines that help convert entrepreneurial dreams into reality. - read more
Breaking Down Barriers: How to Overcome Delays in Business Loan Approvals Breaking Down Barriers: How to Overcome Delays in Business Loan Approvals
Embarking on a business endeavor often requires substantial financial support, and securing a business loan can be a crucial step towards progress and expansion. A well-prepared loan application not only showcases your business in its best light but also significantly enhances the prospects of obtaining the needed funds. Attention to detail and a thorough understanding of the lending process can streamline your journey to approval. - read more
Mastering Cash Flow: Essential Tips for Expanding Your Business's Working Capital Mastering Cash Flow: Essential Tips for Expanding Your Business's Working Capital
Cash flow is the lifeblood of any business, signifying the money that flows in and out of your operations. It's essential for covering daily expenses, paying employees, and capitalizing on growth opportunities. Maintaining a healthy cash flow ensures that a business can meet its obligations and invest in its future. - read more
Startup Loans vs. Business Lines of Credit: Which is Better for Your Company? Startup Loans vs. Business Lines of Credit: Which is Better for Your Company?
Starting a new business is an exciting journey, but it often requires a significant amount of funding to get off the ground. Whether it's for purchasing equipment, hiring staff, or marketing your new venture, securing the right type of financing is crucial for success. - read more
The Ultimate Checklist for Applying for a Business Loan in Australia The Ultimate Checklist for Applying for a Business Loan in Australia
Welcome to the world of boating! Whether you've just bought your first boat or are considering making a purchase, it's essential to understand the importance of regular maintenance. Proper upkeep not only extends the life of your boat but also ensures safety while out on the water. - read more
Alternative Funding Options for Your Australian Business Alternative Funding Options for Your Australian Business
When it comes to starting or expanding a business in Australia, securing funding is often a top priority. However, traditional funding options, such as bank loans or government grants, can be difficult to obtain for small businesses. - read more
The Role of Refinancing in Sustaining Business Growth The Role of Refinancing in Sustaining Business Growth
Loan refinancing is a financial strategy where existing debts are replaced with new ones, usually with different terms and conditions. While it might seem like just swapping one loan for another, the nuances can be game-changers for businesses. Refinancing often provides a chance to improve borrowing conditions, such as reducing interest rates, altering loan durations, or switching to a more favourable lender. - read more
Understanding Loan Terms and Conditions: A Guide for New Business Owners Understanding Loan Terms and Conditions: A Guide for New Business Owners
Starting a business often requires a substantial amount of capital, which many new business owners may not have readily available. Business loans can provide the necessary funding to help get your startup off the ground, from purchasing equipment to hiring staff and everything in between. - read more
Secured vs Unsecured Business Loans: Which is Right for You? Secured vs Unsecured Business Loans: Which is Right for You?
In Australia, business loans are a crucial tool for companies looking to grow, expand, or manage cash flow. From small enterprises to large corporations, securing funding can mean the difference between success and failure. The financial landscape is diverse, offering various loan options tailored to different needs and business models. - read more
Unlocking Cash Flow: How Equipment Leasing Can Benefit Your Australian Business Unlocking Cash Flow: How Equipment Leasing Can Benefit Your Australian Business
In the ever-evolving landscape of Australian business, equipment leasing has emerged as a pivotal financial tool for companies across the spectrum. Whether you're a small start-up or a well-established corporation, the agility to pivot and adapt to market changes is critical. This introduction seeks to shed light on the concept of equipment leasing and its significance in bolstering the operational efficiency of Australian businesses. - read more
Business Loans in Australia: Tips for Finding the Perfect Fit Business Loans in Australia: Tips for Finding the Perfect Fit
Funding is crucial for startups and small businesses looking to grow and succeed. In Australia, there are multiple financing options available, each catering to different business needs. These options range from traditional bank loans to more flexible lines of credit, helping entrepreneurs find the best fit for their specific requirements. - read more
The Role of Refinancing in Sustaining Business Growth The Role of Refinancing in Sustaining Business Growth
Loan refinancing is a financial strategy where existing debts are replaced with new ones, usually with different terms and conditions. While it might seem like just swapping one loan for another, the nuances can be game-changers for businesses. Refinancing often provides a chance to improve borrowing conditions, such as reducing interest rates, altering loan durations, or switching to a more favourable lender. - read more
Startup Loans vs. Business Lines of Credit: Which is Better for Your Company? Startup Loans vs. Business Lines of Credit: Which is Better for Your Company?
Starting a new business is an exciting journey, but it often requires a significant amount of funding to get off the ground. Whether it's for purchasing equipment, hiring staff, or marketing your new venture, securing the right type of financing is crucial for success. - read more
Customized Leasing Solutions: Finding the Right Terms for Your Business Needs Customized Leasing Solutions: Finding the Right Terms for Your Business Needs
Equipment leasing presents a strategic financial opportunity for Australian businesses seeking to maximize operational efficiency without the hefty price tag of purchasing. As many companies strive to stay competitive and agile in a bustling economic landscape, the importance of flexible asset acquisition cannot be understated. - read more


Need Help Finding a Loan?
Loan Amount:
Postcode:
All finance quotes are provided free (via our secure server) and without obligation.
We respect your privacy.

Knowledgebase
Option:
A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.