The economy – what’s in store for 2023?

A slowing, or even an end, of the current round of interest rate rises, lower inflation, an easing of labour shortages and a stronger budget balance sheet are all pointing to a better economic situation for 2023. That’s the good news for the new year being forecast by our regular economics commentator, Melbourne University Economics Professor Neville Norman. Professor Norman says that, while much of the rest of the developed world is heading for a recession this year, it’s likely Australia will buck the trend, and that the worst of times may well be behind us.