Australia’s real gross domestic product (GDP) expanded by an estimated 1.9 per cent last year and is projected to grow by 2.1 per cent this year as the lagged impact of monetary easing and improving consumer sentiment support private demand and investment, according to the International Monetary Fund (IMF), which recently concluded its Article IV Consultation with the country.

GDP growth picked up in the third quarter (Q3) of 2025 after a weak 2024, as private demand gradually recovered.

Australia’s real GDP expanded by an estimated 1.9 per cent in 2025 and is projected to grow by 2.1 per cent in 2026 as the lagged impact of monetary easing and improving consumer sentiment support private demand and investment, the IMF said.
The recovery is expected to continue in the near term.
Labour market conditions are easing gradually after a tight period.
Wage growth is likely to moderate further.

Labour market conditions are easing gradually after a period of tightness, although the unemployment rate, at 4.3 per cent, remains low by historical standards, an IMF release said.

The economic recovery is expected to continue in the near term.

Elevated global uncertainty will continue to weigh on external demand and the current account is expected to remain in deficit into the medium term.

Inflation is projected to converge to the midpoint of the central bank’s 2-3-per cent target range by the latter half of 2027 as pressures on service prices ease and import costs remain stable.

Wage growth is anticipated to moderate further, partially attributable to weak productivity growth, the IMF said.

Risks to the country’s economic outlook are skewed toward slower growth and higher inflation. External threats such as global trade tensions, financial instability and volatile commodity prices can potentially dampen demand and employment, while new trade agreements and greater regional integration could support resilience.

Domestically, persistent inflationary pressures may arise from strong labour markets and constrained supply capacity, the IMF added.

Fibre2Fashion News Desk (DS)

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The euro area recorded a €12.6 billion (~$14.95 billion) trade surplus in goods with the rest of the world in December 2025, down from €13.9 billion (~$16.49 billion) in December 2024, as stronger import growth outpaced exports, according to the Eurostat.

Exports rose 3.4 per cent year on year (YoY) to €234 billion, compared with €226.3 billion a year earlier. Imports increased at a faster pace of 4.2 per cent to €221.3 billion, up from €212.4 billion in December 2024, Eurostat said in a press release.

The euro area has posted a €12.6 billion (~$14.95 billion) goods trade surplus in December 2025, as imports grew faster than exports.
The full-year surplus eased to €164.6 billion (~$195.26 billion).
Similarly, the EU recorded a €12.9 billion (~$15.3 billion) December surplus, with 2025’s total at €133.5 billion (~158.36 billion), reflecting narrower sectoral surpluses despite improved energy balances.

On a month-on-month (MoM) basis, the euro area balance improved from November 2025 to reach €12.6 billion. However, compared with December 2024, the surplus declined by €1.3 billion, largely reflecting weaker sectoral surpluses.

Surpluses in other manufactured goods, and raw materials narrowed during the period. In contrast, the energy deficit eased significantly to -€19.1 billion from -€24.5 billion, providing partial support to the overall balance.

For the full year, the euro area posted a €164.6 billion (~$195.26 billion) surplus in January-December 2025, slightly below €168.9 billion in 2024. Annual exports rose 2.4 per cent to €2,937.9 billion, while imports increased 2.7 per cent to €2,773.3 billion. Intra-euro area trade expanded 2.0 per cent to €2,627.6 billion.

Seasonally adjusted data showed euro area exports rising 1.1 per cent MoM in December, with imports up 0.6 per cent. The adjusted surplus widened to €11.6 billion from €10.2 billion in November. However, in the fourth quarter, exports to non-euro area countries declined 0.7 per cent, while imports fell 1.0 per cent.

Meanwhile, the European Union (EU) recorded a €12.9 billion (~$15.3 billion) trade surplus in December 2025, down from €14.2 billion in December 2024.

Extra-EU exports rose 2.2 per cent YoY to €214.8 billion, while imports increased 3.0 per cent to €201.9 billion. Compared with November 2025, the EU surplus improved, but on an annual basis it narrowed by €1.3 billion.

The decline was driven by a reduced surplus in chemicals and related products, which fell to €16.2 billion from €19.7 billion. Machinery and vehicles saw their surplus ease to €16.3 billion from €18.3 billion, while other manufactured goods shifted from a €1.0 billion surplus to a €1.9 billion deficit. The energy deficit improved markedly to €-21.9 billion from €-28.0 billion.

Primary goods exports fell 2.7 per cent YoY to €32.4 billion, while imports declined 11.0 per cent to €53.4 billion. Energy imports dropped 19.9 per cent, reflecting lower values, even as manufactured goods imports climbed 8.9 per cent.

For the full year 2025, the EU posted a €133.5 billion (~158.36 billion) surplus, compared with €140.6 billion in 2024. Extra-EU exports rose 2.0 per cent to €2,645.0 billion, while imports increased 2.4 per cent to €2,511.5 billion. Intra-EU trade grew 2.6 per cent to €4,142.9 billion.

Seasonally adjusted figures showed EU exports up 1.1 per cent MoM in December and imports up 0.6 per cent, lifting the surplus to €8.8 billion from €7.7 billion in November. However, in the final quarter of 2025, exports to non-EU countries fell 0.8 per cent and imports declined 1.4 per cent, signalling softer external demand towards year-end.

Fibre2Fashion News Desk (SG)