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Westpac Economics reports a complex outlook for the Australasian region, marked by cooling labor markets and significant fiscal shifts. In Australia, April 2026 data reveals employment falling by 18,600 and unemployment rising to 4.5%, yet the Westpac-Melbourne Institute Consumer Sentiment Index rose slightly to 83 amid temporary fuel price relief. The Australian Federal Budget for 2026-27 introduces pivotal tax reforms for housing and negative gearing, although Westpac warns the fiscal impulse remains expansionary, likely necessitating RBA rate hikes in August and September. Simultaneously, the housing market shows clear signs of stress, with home values in Sydney and Melbourne declining as homebuyer sentiment hits deeply pessimistic levels. Across the Tasman, New Zealand is struggling with a sharp energy price shock that has prompted Westpac to slash its 2026 GDP growth forecast to 1.5% and project a 3% OCR to combat energy-driven inflation. Globally, while trade tensions show signs of easing through high-level diplomatic meetings, massive data center investments are currently boosting CAPEX while temporarily dragging on broader productivity measures.

20 reports available

Westpac Coast-to-Coast thumbnail

Westpac Coast-to-Coast

Westpac Economics·Jun 26, 2026

Australia is experiencing a sluggish growth environment defined by a 'two-speed' economy. Massive, structurally-driven investment in data centers and energy is offsetting a weak household and consumer sector.

Westpac Housing Pulse thumbnail

Westpac Housing Pulse

Westpac Economics·Jun 22, 2026

The Australian housing market faces a correction as new federal tax reforms and ongoing RBA rate hikes dampen investor sentiment and activity. Prices are forecast to stall, with turnover expected to drop by 20% throughout 2026.

Australia & New Zealand Weekly thumbnail

Australia & New Zealand Weekly

Westpac Economics·Jun 9, 2026

The report highlights that Australian economic growth in Q1 was heavily driven by a structural investment wave in data centres. Meanwhile, New Zealand faces a slow growth environment characterized by household caution and margin pressure on businesses.

Westpac Market Outlook thumbnail

Westpac Market Outlook

Westpac Economics·Jun 12, 2026

This report provides an outlook for Australia and the global economy, highlighting softening growth, cooling energy price pressures, and central bank reactions to ongoing inflationary risks.

Australia and New Zealand Weekly thumbnail

Australia and New Zealand Weekly

Westpac Economics·Jun 1, 2026

Westpac analysts warn that headline economic data is currently misleading, as underlying inflation and a data-centre investment boom suggest a need for higher interest rates in Australia and New Zealand despite softer headline prints.

Australia And New Zealand Weekly thumbnail

Australia And New Zealand Weekly

Westpac Economics·Jun 6, 2026

This report analyzes Q1 economic data for Australia and New Zealand, emphasizing that current GDP growth is heavily influenced by a data centre investment wave and seasonal distortions rather than underlying trends. Meanwhile, New Zealand faces a 'slouching' economy marked by weak consumption and the dampening effects of global geopolitical tensions.

Australian Dwelling Prices Bulletin

Westpac Economics·Jun 1, 2026

Q1 2026 Labour Account

Westpac Economics·Jun 6, 2026

Talking About Trade

Westpac Economics·Jun 6, 2026

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