Morgan Stanley: Australia's economy will slow down, with annual growth dropping to 1.2%

(1) Morgan Stanley equity strategists state that this year, Australia's economic growth will be slower than anticipated by the country's central bank. Following slightly weaker-than-expected growth in the March quarter, they forecast that for the rest of 2026, domestic demand will slow down under pressure from interest rate hikes, tax changes, and higher energy costs.
(2) According to a report by the strategists, housing and consumption will be the first to bear the brunt of the slowdown in growth.
(3) It is expected that by the end of this year, Australia's growth rate will decrease from 2.6% in 2025 to 1.2%.