Unconventional Economist

By Lucinda Jerogin, Associate Economist at CBA Australian CPI inflation surprised to the downside at 2.1%/yr in May 2025.

In this MacroBusiness podcast, Gunnamatta and Leith van Onselen unpack the budget outlook, the deindustrialisation of Australia, housing policy failures, energy policy failures, and the nation’s falling productivity growth.

A 2024 report by the Penington Institute claimed that cannabis has become an integral part of the criminal economy, representing a $5 billion black market in Australia that generates massive profits for transnational gangs.

Last week, CBA economist Harry Ottley reported on the quarterly labour market account from the Australian Bureau of Statistics (ABS), which showed that 60% of the nation’s job growth since the beginning of the pandemic has come from the non-market (government-aligned) sector.

Wind generated power now comprises a substantial proportion of Australia’s electricity supply. As of September 2024, Australia had an installed wind capacity of approximately 13.3 GW. Wind power accounted for 13.4% (or 31.9 TWh) of Australia’s total electricity generation in 2024.

Victoria’s financial situation is dire, as projections indicate that the state’s debt will increase from $155.5 billion to $194 billion by FY29.

Credit ratings agency S&P notes that the combined budget deficits of Australia’s state and federal governments total $52 billion, while the net debt now exceeds 60% of the country’s GDP.

The NSW government’s budget papers show that the state is expected to post a deficit of $5.7 billion for the 2024-25 financial year.