As Australia navigates a post-pandemic recovery marked by easing inflation and monetary policy shifts, recent reports from the Commonwealth Bank highlight persistent challenges and signs of stability. Young Australians grapple with housing affordability, local shares show restraint amid global uncertainties, and the world economy demonstrates unexpected toughness against trade disruptions. These insights underscore a mixed but improving financial landscape.
Housing remains the dominant financial worry for young Australians, according to a CommBank poll of 1,400–1,500 respondents via The Daily Aus Instagram stories.
Rent tops the list at 22.8%, followed by mortgages at 19.9%, saving for a home deposit at 7.3%, and broader housing challenges at 5.4%, collectively accounting for over 50% of concerns.
Essentials like groceries (15.2%) and utilities bills (9.2%) also weigh heavily, with general cost-of-living pressures cited by 4.7%.
Seasonal spikes, such as Christmas spending (8.2%), exacerbate the strain, alongside HECS debt (3.2%) and insurance costs (4.1%).
CommBank Economist Harry Ottley notes that the rental market, though slightly less intense, has rents over 20% higher than in 2019, leaving younger, lower-income groups with reduced disposable income.
However, spending data indicates improvement in 2025, with non-essential purchases rebounding, suggesting cost-of-living pressures are easing from their peaks.
This aligns with broader aspirations for home ownership, delayed by rising prices and immediate expense priorities.
On the markets front, Australian shares closed flat as investors awaited key US jobs data and potential Supreme Court rulings on Donald Trump‘s trade policies.
The ASX 200 dipped 3 points (0.03%) to 8,717.8, while the All Ordinaries fell 0.5 points (0.01%) to 9,045.9. The energy sector provided a lift, rising 2.1% on rebounding oil prices, with Brent crude at US$62 per barrel after a dip below US$60 due to a US strike in Venezuela.
Four of 11 sectors gained, six declined, and utilities held steady.
Weekly, the ASX 200 shed 10 points (0.1%), marking its second consecutive loss week. The Australian dollar eased to 66.95 US cents.
This cautious stance reflects broader Wall Street influences, including AI-driven chip stock gains and record Dow highs, tempered by commodity fluctuations.
Globally, the economy has weathered the 2025 tariff shock better than anticipated, per United Nations forecasts cited by CommBank.
Growth is projected at 2.7% in 2026 and 2.9% in 2027, below the pre-pandemic 3.2% average (2010-2019). Resilience stems from front-loaded shipments, inventory builds, robust consumer spending, monetary easing, and stable labor markets, preventing escalation.
Australia’s outlook brightens: 1.8% growth in 2025 (up from 1.1% in 2024), accelerating to 2.2% in 2026 and 2.4% in 2027, fueled by wage growth, private consumption, and RBA rate cuts starting February 2025.
The US sees 1.9% growth in 2025 (down from 2.8%), rebounding to 2.0% in 2026 and 2.2% in 2027, supported by fiscal and monetary policies, though inflation lingers above 2%.
China‘s projections: 4.6% in 2026 and 4.5% in 2027, stabilized by a US trade truce and domestic stimulus.
CBA’s Joseph Capurso anticipates relatively stronger US growth at 2.4% in 2026, driven by tech investments.
These updates paint a picture of cautious optimism: domestic pressures persist for youth, markets tread carefully, yet global and local economies show adaptability.
As policies evolve in 2026 and beyond, monitoring consumer trends and trade dynamics will be key to sustained recovery for consumers and businesses operating in Australia.