Deloitte Cuts Australia 2026-2027 Real Growth Forecast to 1.3%

Deloitte Economics Institute said Australia could face its longest period of economic weakness in more than 30 years, with full-year growth in 2026 recorded at just 1.1%. According to Jin10, the institute said that while oil prices may be falling, rising interest rates, weak consumer and business confidence, stalled housing investment, and an ongoing cost-of-living crisis have undermined Australia’s growth outlook. Against this backdrop, Deloitte lowered its forecast for Australia’s real economic growth in 2026-2027 to 1.3% from 1.9%. It also expected annual growth over the next two years to remain below 2.0%. Deloitte said the 1.1% growth rate for 2026 would mark the longest slump since the recession in the early 1990s.