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The OECD warns that Australian economic growth will slow in 2026 due to US President Trump’s tariff agenda, with GDP growth expected to decline to 1.8% from 1.9% in 2025. Global growth is also projected to moderate, with higher trade barriers impacting investment and household spending. Inflation is expected to be higher than previously forecasted, with headline inflation in Australia predicted to reach 2.2% in 2026, allowing for continued policy rate reductions.
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