Forward View Australia Economic Outlook February 2026

This technical report presents the economic outlook for Australia as of February 2026, focusing on key indicators and forecasts. It outlines the current state of the economy, noting that it has maintained momentum from mid-2025, with low unemployment and robust household spending. However, the report highlights risks of inflation pressures due to capacity constraints. It details expectations for underlying inflation to remain above 3% throughout 2026, prompting anticipated interest rate increases by the Reserve Bank of Australia (RBA). The report discusses various economic sectors, including consumption, the labor market, business conditions, foreign exchange, and housing. It notes that while household consumption growth is expected to moderate, business investment remains strong, particularly in data centers and telecommunications. The housing market is characterized by slowing price growth in major cities but solid gains in other capitals. Overall, the report provides a comprehensive view of the economic landscape and forecasts for growth, inflation, and employment trends.