Jim Chalmers is putting a positive spin on the economy, but is the outlook for Australia grim?
Treasurer Jim Chalmers is optimistic about Australia's economy, highlighting a boom in datacentres as a positive sign. However, the overall economic outlook appears grim, with slowing growth and declining living standards. The recent national accounts reveal that while GDP growth remains steady, many underlying economic indicators are weak.
- ▪The Australian economy slowed sharply in early 2026, with living standards declining.
- ▪Investment in datacentres was a significant contributor to GDP growth, but most components were imported.
- ▪Household incomes are struggling to keep pace with inflation, leading to reduced savings and spending on non-essentials.
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Treasurer Jim Chalmers hailed the boom in datacentres, which papered over much of the bad news in the economy. Australia has not seen this pace of new business spending since the end of the mining investment boom nearly 15 years ago. Photograph: Hollie Adams/ReutersView image in fullscreenTreasurer Jim Chalmers hailed the boom in datacentres, which papered over much of the bad news in the economy. Australia has not seen this pace of new business spending since the end of the mining investment boom nearly 15 years ago.
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