Jim Chalmers is putting a positive spin on the economy, but is the outlook for Australia grim?

The economy was slowing even before the Middle East conflict and interest rate hikes started to bite, while the boom in datacentres was a rare bright spot

• Get our breaking news email, free app or daily news podcast

The economy slowed sharply in early 2026 and Australians’ living standards are once again going backwards.

At the risk of upsetting the treasurer by “talking down the economy”, as he put it, there wasn’t all that much to love in the latest national accounts.