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United Nations Cuts 2026 Growth Forecast for Australian Economy as Energy Supply Shock Bites

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The United Nations lowered its 2026 growth forecast for the Australian economy to 2% as the country's demand‐led recovery is now under pressure from the energy supply shock created by the Middle East conflict, according to the mid-year update of the body's World Economic Situation and Prospects report.

A previous report in January forecast 2.2% growth for Australia, which continues to rely on imports of refined fuel products.

"In Australia, wage-driven inflationary pressures have led the Reserve Bank to resume monetary tightening in early 2026, adding a further drag on growth," the new report said.

The UN also lowered its 2026 global economic growth forecast to 2.5% from 2.7% previously.

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