Quarterly Economic and Market Update

The Quarterly Economic and Market Update for March 2025 highlights a cautiously optimistic global and domestic economic environment amid ongoing uncertainties.

Inflation is trending lower, but trade tensions and mixed economic signals have led central banks to maintain a cautious stance on interest rates.

The Australian economy showed moderate growth driven by private demand, including household consumption and private investment, while public sector spending remains elevated but is expected to slow gradually. Consumer sentiment has improved, buoyed by recent interest rate cuts and easing cost-of-living pressures. The labor market is gradually loosening, with employment growth continuing in sectors aligned with government policies.

Global economic growth remains steady at around 3.3%, with strong manufacturing activity in China and India contrasting with weakness in Japan and Korea. However, risks from trade disputes and policy uncertainties persist, potentially dampening growth and trade.

Overall, financial markets experienced volatility in March, with mixed equity and bond market performances, which suggests a careful watch on inflation trends and central bank actions as key factors shaping economic and market outcomes in the near term.

Click to open a PDF for more comprehensive economic and market update:
Quarterly Economic Market Update – March 2025