Key economic trends for Australia

Reserve Bank Governor Philip Lowe has used a major speech to outline how he sees where the Australian economy is heading over coming years.

KEY ECONOMIC TRENDS

* Australian economy to expand by about 3 per cent over 2019 and 2.75 per cent over 2020.

* For 2018, economic growth of slightly below 3 per cent.

* Labour market outlook remains positive. Unemployment rate stands at 5 per cent, the lowest in over seven years. Growth will be sufficient to see a decline in unemployment to around 4.75 per cent over the next couple of years.

* Skilled worker shortage is likely to push up wages.

* Gradual pick-up in underlying inflation, to about 2 per cent later this year and to reach 2.25 per cent by the end of 2020.

(Source: Reserve Bank)