The International Monetary Fund has today backed Australia's budget and fiscal strategy at a time of global uncertainty.
The IMF's Statement highlights Australia's soft landing, strong economic foundations and our ambitious reform agenda.
It is a powerful endorsement of Labor's responsible economic and fiscal management.
"Australia is managing a soft landing amid global uncertainty: inflation has declined significantly, the labor market is still strong, and private demand is recovering," the IMF finds in its Concluding Statement for its 2025 Article IV Mission to Australia.
"The Commonwealth's fiscal strategy has been effective over the post‑pandemic period," the Statement says.
Under Labor, inflation is around a third of its peak, debt is down, real wages are growing, unemployment is low, we've overseen the creation of more than 1.2 million jobs and interest rates have already fallen three times this year.
This is the soft landing we have been planning for, preparing for and hoping for.
Together we have made remarkable progress in the economy, but we know there is still much more to do because the international economic environment is so uncertain.
We know the best way to build on all the progress we've made is to make our economy more resilient and more productive.
The Statement acknowledges the Government's ambitious agenda across productivity, dynamism and competition.
"The authorities are implementing a series of reforms to modernize competition policy to better support business dynamism, innovation, and investment."
"Going forward, the authorities' multi‑pronged agenda as recently discussed at the August 2025 Economic Reform Roundtable, marks an important initiative, but it is essential to maintain momentum with clear implementation plans."
The IMF also concludes the net zero transformation is a golden opportunity for investment and productivity in Australia.
"The green transition, including the authorities' recently announced 2035 commitments, offers opportunities for enhancing investment, productivity, and diversification while contributing to Australia's climate goals," the Statement says.
We've made substantial progress on productivity reform since our Roundtable in August, across housing, environmental approvals, better regulation, artificial intelligence, and simplifying trade, with more underway.
We know the job is far from over because people are still under pressure. That's why our economic plan is all about helping with the cost of living at the same time as we modernise Australia's economy to boost living standards.
The best defence against global volatility and the best way to lift wages and living standards over the long term is with a more productive and resilient economy and a stronger budget, and that's our focus.
