Treasury downgrades economic outlook ahead of December midyear budget update, Jim Chalmers says

Summary

Treasurer Jim Chalmers has revealed that the December midyear budget update will project weaker growth and higher unemployment for Australia, as economists warn of a difficult six months ahead. In a speech on Friday morning, Chalmers said higher inflation is putting people under pressure, tighter monetary policy is weighing on domestic activity, and the softening labour market shows this. Two days before the speech, a senior Reserve Bank official had foreshadowed the potential for another interest rate rise in under two weeks. Earlier in the week, Chalmers had said in a speech that the economy would be a bit better in a year's time, but on Friday he said Treasury officials were downgrading their forecasts ahead of the update.

Timeline

1. The Guardian

   22 Oct 2026, 11:30 UTCSource ↗

   The Guardian reports that Treasury is revising all the numbers for the midyear budget update, with Chalmers revealing weaker growth and higher unemployment are projected, as economists warn of a difficult six months ahead.

2. The Guardian

   23 Oct 2026, 04:54 UTCSource ↗

   The Guardian reports that after Chalmers earlier said the economy would be a bit better in a year's time, he revealed on Friday morning that officials were downgrading forecasts to show slower growth and higher unemployment.