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Key Economic Indicators to Watch in 2019

Updated: Feb 16

As 2019 unfolds, Australian businesses must closely monitor key economic indicators—GDP growth, unemployment rates, and inflation—to inform strategic planning and capitalize on economic shifts.


Gross Domestic Product (GDP) Growth

In 2018, Australia's GDP growth was weaker than anticipated, leading to downward revisions for 2019. The Reserve Bank of Australia (RBA) projected GDP growth at approximately 2.75% for both 2019 and 2020. This adjustment reflects global economic uncertainties and domestic factors influencing economic performance (RBA, 2019).

Unemployment Rates

The unemployment rate in Australia was expected to remain around 5% for some time, with projections indicating a gradual decline to 4.75% by mid-2021. This suggests ongoing spare capacity in the labor market, with employment growth anticipated to continue supporting economic activity (RBA, 2019).


Inflation Trends

Underlying inflation was projected to rise to 2% by early 2020, with a modest increase thereafter. This anticipated uptick in inflation is attributed to factors such as rising wages, a slight depreciation of the exchange rate, and potential increases in food prices due to drought conditions (RBA, 2019).


Implications for Businesses

Understanding these economic indicators is crucial for businesses to navigate the evolving economic landscape:

  • Strategic Planning: Anticipating moderate GDP growth allows businesses to plan for steady, albeit unspectacular, economic conditions.

  • Labor Market Considerations: With unemployment rates projected to decline gradually, businesses may face a tightening labor market, influencing hiring strategies and wage negotiations.

  • Pricing Strategies: Rising inflation may impact cost structures, necessitating adjustments in pricing strategies to maintain profitability.


In 2019, Australian businesses should closely monitor GDP growth, unemployment rates, and inflation trends to inform strategic decisions. By staying informed and adapting to these economic indicators, businesses can better position themselves for success in a dynamic economic environment.


If you would like to enquire about your business's economic outlook or need assistance navigating the latest economic trends, book a complimentary consultation with DGMS Group.


  1. Reserve Bank of Australia (RBA). (2019). Economic Outlook – May 2019. Retrieved from https://www.rba.gov.au/publications/smp/2019/may/economic-outlook.html


 
 
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