IMF expects Australia’s unemployment rate to rise to 4.7% in 2027

The International Monetary Fund expects Australia’s unemployment rate to rise from 4.4% this year to 4.7% in 2027.

That would mean nearly 800,000 Australians out of work, according to the forecast.

Australia is still expected to have one of the faster-growing economies among developed countries, with growth of 1.9% this year and 1.6% next year.

The IMF expects unemployment to stay steady or fall slightly in most other rich countries over the same period.

It also forecasts Australian inflation will ease from 3.9% this year to 3.1% in 2027.

Higher unemployment may help bring prices down, but the IMF warns that global economic resilience is under strain.

It says governments face risks from rising borrowing costs and debt, while gains from the artificial intelligence boom are concentrated in a small number of firms and economies.