Economy

Updates on the state of the economy, growth, inflation, and employment.

Economy
Few Australians aware of new Buy Now Pay Later rules
While a majority of the Australians surveyed use Buy Now Pay Later services, just 18% of these customers are aware of new regulations, a report by Afterpay and Experian has found. Buy Now Pay Later (BNPL) providers are required to hold an Australian credit licence and conduct credit checks on new users as of 10 June. While 18% of BNPL customers surveyed were aware of these changes, 62% said they would feel more confident using BNPL under the new regulations. “Awareness of the new rules remains low, but support for a proportionate regulatory framework is high. That tells us we have an opportunity — and an obligation — to improve credit literacy and help Australians understand how credit reporting works, what behaviours affect their scores, and how to make choices that protect and grow their financial wellbeing,” says Experian A/NZ Credit Bureaux managing director Brian Bond. “The evolving BNPL landscape isn’t just about compliance — it’s about building consumer confidence and driving loyalty. Shoppers are increasingly looking to retailers and providers that align with their values of transparency, responsibility, and financial wellbeing,” the Australian Retail Association said in a statement. The report found that 76% o
Economy
Bezos-Sanchez wedding: Venice set to bank US$1.1bn
Venice is poised to reap an estimated US$1.1 billion economic windfall from the ultra-luxurious wedding of Amazon founder Jeff Bezos and media executive Lauren Sánchez, according to Italy’s Ministry of Tourism. The three-day celebration, which drew 200 A-list guests including Bill Gates, Oprah Winfrey, and Leonardo DiCaprio, has been hailed by officials as a “concrete driving force” for the city’s struggling tourism sector. The projected impact — equivalent to nearly 68% of Venice’s annual tourism turnover — includes both direct spending and global media exposure. The wedding itself reportedly cost between $46 million and $55 million, with lavish details including a full buyout of the Aman Venice hotel, Michelin-starred catering, Murano glass gifts, and private water taxis ferrying guests across the canals. The couple also pledged €3 million (US$3.2 million) in donations to local environmental and cultural institutions, including UNESCO Venice and the lagoon research group CORILA. Despite the economic boost, the event sparked protests from residents and activists who criticised the city’s overreliance on elite tourism. They also criticised the symbolic takeover of public space by ultra-wealthy visitors. For inves
Economy
US, China confirm trade deal framework
China has confirmed key details of a new trade deal framework with the United States, under which Beijing will approve export licences for restricted goods and Washington will lift several measures previously imposed against China. The agreement, outlined in a statement by China’s Ministry of Commerce on Friday, aims to ease longstanding tensions over rare earth exports and technology access. China will review and approve applications for items subject to export controls, while the United States will "cancel a series of restrictive measures taken against China", the ministry said, without detailing specific provisions. The announcement follows comments by U.S. President Donald Trump, who said on Thursday that “we just signed with China yesterday”. According to CNBC, a White House official later clarified that both sides had agreed to “an additional understanding” on implementing the Geneva agreement reached in May. The Geneva framework was designed to de-escalate the tariff conflict that began in April when China introduced licensing requirements on rare earth exports in response to sharp U.S. tariffs. Those measures prompted concern about global supply chains, as China dominates global production of critical elemen
Economy
UK vehicle production plummets in May amid US tariffs
United Kingdom’s vehicle production fell by 32.8% in May, with exports dropping as United States tariffs took effect. Just 49,810 cars and commercial vehicles were made in the U.K. last month, according to the country’s Society of Motor Manufacturers and Traders (SMMT). Across 2025 to date, production has fallen 12.9% to reach its lowest levels since 1953. “While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginning of some optimism for the future,” said SMMT CEO Mike Hawes. “Confirmed trade deals with crucial markets, especially the US and a more positive relationship with the EU, as well as government strategies on industry and trade that recognise the critical role the sector plays in driving economic growth, should help recovery.” U.K. car production fell by 31.5% to 47,723 units in May, which the SMMT credited to model changeovers and the impact of the U.S.’ tariffs. Commercial vehicle production dropped by 53.5% to 2,087 units, partly due to the closure of Luton’s Vauxhall plant in March. Exports to the U.S. and European Union declined by 55.4% and 22.5% amid U.S. tariffs, which had included a 25% levy on cars and car parts from the U.K. Export volumes of
Economy
Gold to climb to third in Australia's export rankings
Buoyed by its safe haven status amid geopolitical-induced share market volatility, and uncertainty around the U.S. Trump administration’s trade war, gold is on track to become Australia’s third-highest value export in 2026. Now trading above US$3,100 an ounce, Australia’s export earnings from the precious yellow metal are expected to hit $56 billion next year, nudging metallurgical coal out of third place with around $40 billion in annual export earnings. Also fuelling demand for the precious metal are plans by global central banks to diversify their reserves away from U.S. dollars. According to key findings from 2025 data released by the World Gold Council (WGC), central banks are expected to increase official sector gold holdings in 2026. Based on the WGC numbers, a record nine in 10 (95%) reserve managers expect central banks to continue increasing gold holdings in the next 12 months - up 17% on 2024 findings. After eight years of conducting this survey, the WGC’s Shaokai Fan notes an important milestone this year with virtually half (43%) of the central bank respondents intending to increase their own gold holdings in the coming year. “This is remarkable, especially considering how many record-high prices we’

Economy
Australian economy hit hard by wave of major disasters
Due to the rise in natural disasters, their effects on the economy are becoming more damaging. While current estimates suggest natural disasters impact global economies to around US$200 billion annually, research from the United Nations Office for Disaster Risk Reduction (UNDRR) found the amount was closer to US$2.3 trillion. According to the UNDRR report, financial losses from disasters have doubled in the past two decades worldwide.Impact on AustraliaIn Australia alone, Treasury analysis estimates natural disasters have already cost the nation A$2.2 billion in the first half of 2025 and wild weather claims in 2025 have already surpassed those in 2024 in just the first five months. In Autumn alone, NRMA received 15,840 wild weather claims, largely driven by Ex-Tropical Cyclone Alfred. “In the first five months of 2025, we’ve received more than 32,000 wild weather-related claims. The data confirms what we already knew; wild weather is increasing in severity and frequency and the impacts on people and communities have been devastating,” NRMA Insurance Executive General Manager Direct Claims, Luke Gallagher said in a media release.Credit: Aliceinthealice / WikimediaCommonsIn the first quarter of 2025, the Australian econ
Economy
China-linked firm sued for breaking investment laws
Australia's Treasurer Jim Chalmers has taken landmark legal action against a Chinese-linked investor in ASX-linked rare earth miner Northern Minerals (ASX: NTU) for allegedly ignoring a Commonwealth order requiring it to divest its holdings in the stock due to national interest concerns. In an unprecedented move taken by an Australian treasurer, Chalmers has taken action in the Federal Court of Australia against Indian Ocean International Shipping and Service Company Ltd and an unnamed former associate for not complying with Australia’s foreign investment law. The government is now seeking penalties, declarations and costs from the UAE-based Indian Ocean International Shipping and Service Company, one of five foreign investors with links to China previously ordered by Chalmers to divest shares in June last year. “Foreign investors in Australia are required to follow Australian law,” Chalmers said. “We are doing what is necessary to protect the national interest and the integrity of our foreign investment framework.” The five groups, which were reportedly linked to China - ordered by Chalmers in June 2024 to sell around 611 million Northern Mineral shares, contained associates of an investor known as Yuxiao – British
Economy
Victorian gambling harm has doubled to $14bn
A new report finds gambling harm in Victoria has doubled to $14 billion over the last eight years. The findings come from the Alliance for Gambling Reform and based the figures on the 2022–2023 financial year, an update from the previous report which covered 2014-2015. For problem gamblers, pokies were the main offender, accounting for two-thirds of financial losses. The Social Costs of Gambling to Victoria 2023 report also found that Victorian gamblers were facing $5.2 billion in financial impacts such as bankruptcy, $3.3 billion in costs of emotional and psychological harm, $2.5 billion in relationships and family costs and $1.5 billion in productivity loss, and the impact on work or study. The Victorian and local governments were also facing costs to the tune of $1.3 billion. While the report took inflation into account, the dramatically higher figures also reflect an increase in problem gamblers. The report states that, aside from inflation, the higher cost mainly reflects an increase in spending by people at risk of harm compared to those who gamble without experiencing harm, and Alliance for Gambling Reform's CEO, Martin Thomas is now calling on politicians to step up their response to the crisis. “These
Economy
US Q1 GDP downgraded amid trade gap, weak spending
The United States economy contracted more sharply than previously estimated in the first quarter of 2025, marking the first economic shrinkage in three years. Gross domestic product (GDP) declined at an annualised rate of 0.5% from January through March, according to the Commerce Department's third and final estimate released Thursday. The initial estimate projected a 0.3% drop, later revised to a 0.2% decline. The downturn was largely attributed to a wave of imports as companies and households rushed to buy foreign goods ahead of the Trump administration’s impending tariffs. Consumer spending - which makes up more than two-thirds of U.S. economic activity - also has slowed significantly. The latest data showed spending increased just 0.5% in Q1, down from the previous 1.2% estimate, and marking the weakest pace in over four years.Credit: U.S. Bureau of Economic AnalysisWholesale inventories also declined, with overall stockpiles falling 0.3% to $905.4 billion in May. Durable goods orders jumped 16% in May to $343.59 billion, rebounding from April’s 6.6% drop, driven by a 48% surge in transportation equipment and a 231% spike in nondefense aircraft orders, as Boeing recorded its best month since 2014 with 303 ord