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Australia's economy slowed in January 2026, with growth near trend due to weaker sentiment and housing approvals, though labor market strength supports a 2.5% GDP forecast.
Australia’s economic momentum slowed in January 2026, with the Westpac–Melbourne Institute Leading Index dropping to a 0.02% annualized growth rate from 0.44% in December, signaling near-trend growth rather than expansion.
The decline was driven by weaker consumer sentiment and falling housing approvals, while higher commodity prices provided partial support, though a strong Australian dollar may limit gains.
Westpac maintains its 2026 GDP growth forecast at 2.5%, citing a resilient labor market, and expects the Reserve Bank of Australia to hold rates in March but may raise them by 25 basis points in May, depending on inflation data.
La economía de Australia se desaceleró en enero de 2026, con un crecimiento cercano a la tendencia debido a la debilidad del sentimiento y las aprobaciones de vivienda, aunque la fortaleza del mercado laboral respalda un pronóstico de PIB del 2,5%.