Australia’s Economy in 2025: Inflation Rate, Unemployment, and More.
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Australia is a mixed economy that brings its major focus to factors like quality of life, health, and education. As of 2025, the Australian economy is quite slow but steady.
If you want to understand Australia’s economy in 2025, then read further into this article, where we have jotted down Australia’s major economic indicators, inflation rate, and more.
So what are you waiting for? Start reading now!
Australia’s Major Economic Indicators for 2025
The summary of the federal budget showed that things in the major economic indicators were picking up. Here is a brief about the economic indicators for Australia in 2025:
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The economists suggested that the unemployment rate might go up to 4.25 percent. However, the predicted number was beaten, and the unemployment rate is lower than economists once thought possible.
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The overall economic growth rate is predicted to pick up from 1.5 percent in 2025 to 2.25 percent in 2026, and by 2027, it can go up to 2.75 percent.
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The prediction suggests that the nominal wages might grow faster than the inflation between 2024-25 and 2028-29.
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The recovery from real wage growth will help families repair their household budgets after years of damaging inflation.
Also Read: 20 Things to Carry While Travelling to Australia from India
Progress on Inflation Rate in Australia
According to recent reports, inflation in Australia has been better than predicted.
From what has come out so far, inflation stands inside the 2-3 percent target band around the middle of 2025. Technically, just a few months away.
As of February 2025, Australia’s monthly CPI indicators dropped to 2.4% from easing January's 2.5%, and noting the lowest inflation rate since November 2024. The overall inflation rate has been trimmed to 2.7 %.
Also Read: Cost of Studying in Australia for Indian Students in 2025
Australia’s Unemployment Rate Will Grow Lower in 2025
The outlook on the unemployment rate is positive as the expected participation rate is going to be higher. Australia’s unemployment rate is currently around 4.1% and will remain relatively stable.
The labour market of Australia has shown significant strength with employment growth growing significantly, plus the vacancies are increasing side-by-side. However, the labour cost remains high, with private sector wage growth easing in year-ended terms but steady in quarterly terms.
Australia’s Disposal Income Scenes in 2025
In 2025, Australia's per capita income is predicted to reach $59.71k, and the total consumer spending is expected to be $899.02bn.
Economic Indicator |
2025 Prediction |
GDP (Nominal) |
$1.880 trillion |
GDP (PPP) |
$1.970 trillion |
GDP per Capita |
Predicted to reach $62,939 USD by the end of 2025 |
GDP Growth Rate |
2% (Vanguard), 1.75% (Treasury), 3.2% (other sources) |
Total Consumer Spending |
$899.02 billion USD |
Disposable Income per Capita |
$59,710 USD |
Underlying Cash Balance |
Pridicted deficit of $42.1 billion in 2025-26 (1.5% of GDP) |
Budget Deficit |
Increased to $36.9 billion in 2028-29 |
GDP Rank (Nominal) |
13th |
GDP Rank (PPP) |
19th (2024) |
Inflation Rate |
Pridicted to stabilize around 2.5% to 2.75% (varied forecasts) |
Unemployment Rate |
Forecasted to remain around 4.0% to 4.5% |
Interest Rate |
Predicted to decrease, potentially starting early 2025, with a target around 3.5% by year-end |
Also Read: 10 Best Regional Areas in Australia for PR in 2025
Australia’s Net Overseas Migration Forecasts in 2025
In 2025, Australian economists are predicting an overall decrease in net overseas migration to 26,000, it shows a huge drop from the peaks of 528,000 in 2022-23 and 435,000 in 2023-24. This notes a lower number of migrant arrivals.
Year |
2021-22 |
2022-23 |
2023-24 |
2023-24 |
2024-25 |
2025-26 |
2025-26 |
2026-27 |
Budget 2023-24 |
184,000 |
400,000 |
315,000 |
260,000 |
260,000 |
260,000 |
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Budget 2024-25 |
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528,000 |
395,000 |
260,000 |
255,000 |
235,000 |
235,000 |
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Budget 2025-26 |
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435,000 |
335,000 |
260,000 |
225,000 |
225,000 |
225,000 |
Alternative Source |
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507,600 |
377,400 |
248,000 |
257,100 |
234,700 |
234,800 |
234,800 |
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Frequently Asked Questions
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