Economic News

While none of these factors alone represents an extreme economic shock, their combination is creating a difficult environment forMortgageholders, renters, workers and retirees. Higher borrowing costs are affecting household budgets, employment conditions are becoming less supportive, and essential expenses remain elevated.

Australia is currently facing some of the conditions that can increase stagflation risks. Inflation remains above the Reserve Bank of Australia’s (RBA) target range, while economic growth has moderated. At the same time, energy price movements and global economic uncertainty have added further pressure.

According to the Australian Bureau of Statistics (ABS)Balance of Paymentsdata, Australia recorded a current accountDeficitof $27.2 billion in the June quarter of 2026. The result represented a quarterly deterioration and marked the ninth consecutive quarter of deficit.

According to Australian Bureau of Statistics (ABS) data, the goods and services trade balance recorded a deficit of $5.1 billion during the quarter.

According to the Australian Bureau of Statistics (ABS), the terms of trade fell 1.6% during the quarter, with theindexdeclining to 94.8 from 96.3 in the March quarter.

S&P Global Ratings lowered Queensland’s long-term issuer credit rating from AA+ to AA on 11 September 2026, marking the state’s first downgrade since 2009. The ratings agency maintained a stable outlook on the revised rating.

Recent economic indicators show a mixed picture. Economic activity continues to expand, but momentum has moderated. Inflation has eased from earlier highs but remains above the Reserve Bank of Australia’s (RBA) target range, while households and businesses continue to face higher borrowing costs.