Australia’s 2025 Economic Forecast: Insights from Andrew Baxter on What’s Next

As Australia faces economic uncertainty, Andrew Baxter offers a clear-eyed perspective on what lies ahead in 2025. With GDP growth projected at just 2% and productivity gains lagging, concerns about a possible recession remain. However, Baxter points to key stabilizers—such as low unemployment, rising wages, and potential interest rate cuts—as reasons for cautious optimism. He emphasizes the importance of balanced government policy, smarter energy strategies, and renewed focus on private sector investment. While risks persist, Baxter believes that with decisive action, Australia could achieve a soft landing and restore economic confidence in the year ahead.

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