KPMG - Economic Outlook Australia, Q2 2023

The Australia Economic Outlook Q2 2023 report by KPMG Australia provides an overview of the global economic landscape, an analysis of the Australian economy, and a forecast for the coming quarters. The report notes that financial conditions have "tightened" across most countries following rapid increases in policy rates, and the continuing conflict between Russia and Ukraine is still predominantly impacting markets across Europe. Despite these challenges, the global economy started 2023 remarkably well, and to some degree, this positivity ebbed into the second quarter as well. The upturn in growth at the beginning of the second quarter is led by the services sector, while the manufacturing sector is struggling. New orders failed to pick up, reflecting subdued demand. In terms of the Australian economy, the report notes that the country's economic growth is expected to remain relatively strong, with GDP growth forecasted to be around 2.5% in 2023. The report also highlights the importance of the services sector to the Australian economy, which has been a key driver of growth in recent years. The report notes that the Australian government's focus on infrastructure spending and tax reform is likely to support economic growth in the coming quarters. However, the report also notes that there are some risks to the Australian economy, including the potential for a slowdown in China, which is a key trading partner for Australia. Overall, the report provides a comprehensive analysis of the Australian economy and the global economic landscape, and offers insights into the key trends and challenges that are likely to shape the economic outlook in the coming quarters.