Australia’s Economic Future 2025: Recession Warning or Path to Recovery? | By Andrew Baxter
Australia’s economic future is increasingly uncertain, raising red flags for investors and the general public alike. Global trade headwinds, shifting domestic governance, and mounting challenges in productivity and wage growth are creating a sense of economic unease. The central question many are now asking is: Will Australia achieve a soft landing, or are we on the brink of a recession? Government Policy: Stability with Caution The recent federal election delivered a majority government, providing the leadership with a strong mandate to implement its agenda. While this outcome brings a degree of political stability, it also introduces new risks depending on the execution of key policies. Australia’s Labor government has historically focused on wealth redistribution — including initiatives like student debt relief and expanded public services. While these programs can offer social benefits, they must be balanced against the risk of deterring high-income earners and private...