Australia’s economy is expected to grow by 2.5 per cent this calendar year, but there will be little change to wages growth and unemployment, according to the Commonwealth Bank’s chief economist.
The Commonwealth’s Michael Blythe has produced a research paper on issues for Australia in 2020 saying while the economy would skew in a more positive direction, 2.5 per cent growth would be another year of sub-trend growth.
This rate of growth would make it difficult to achieve any inroads into unemployment, according to Mr Blythe, and wages growth would struggle to gain traction.
Britain’s plan to leave the European Union, a slowdown in the Chinese economy and the possibility of a US recession were all cited as global risks to the local economy.
However Mr Blythe said Australia was well placed to deal with these and policy options were available.