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The economy is slowing but not by much. While high interest rates and a tightening in fiscal policy are impacting confidence and the labour market, economic growth is largely resilient and inflation remains high. The economy is a patchwork of highs and lows.

A patchwork economy

ARTICLE – SEPTEMBER 2026
The June quarter GDP confirmed a step down in growth from a peak of 2.6 per cent at the end of 2025 to 2.1 per cent. Slower growth is a central theme of the tightening in economic policy in 2026 as a means to lower the inflation rate. It is yet to fully play out.

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