Jim Chalmers is putting a positive spin on the economy, but is the outlook for Australia grim?

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Australia's economy slowed sharply in early 2026, with living standards declining amidst interest rate hikes and regional conflicts. Data center construction remains a rare positive sector, contrasting with the broader economic downturn.

The economy was slowing even before the Middle East conflict and interest rate hikes started to bite, while the boom in datacentres was a rare bright spot Get our breaking news email, free app or daily news podcast The economy slowed sharply in early 2026 and Australians’ living standards are once again going backwards. At the risk of upsetting the treasurer by “talking down the economy”, as he put it, there wasn’t all that much to love in the latest national accounts. Continue reading...