As we reach mid-2025, the global economy faces a pivotal moment. While growth projections remain positive, underlying challenges prompt governments, businesses, and investors to recalibrate their strategies.
Global Growth: A Slower Pace Ahead
The International Monetary Fund (IMF) projects global growth at 3.3% for both 2025 and 2026, a slight deceleration from previous years. This slowdown is attributed to persistent trade tensions, particularly stemming from recent U.S. tariff implementations, and heightened policy uncertainties.
Australia: Resilience Amidst Global Headwinds
Australia’s economy demonstrates resilience, with projections indicating a 2% growth in 2025. The re-elected Labor government is focusing on enhancing economic resilience, improving productivity, and addressing fiscal sustainability. Treasurer Jim Chalmers emphasizes the importance of boosting productivity to safeguard against global uncertainties and improve living standards.
Western Australia: Leading the Charge
Western Australia continues to outperform other states, topping the economic leaderboard for the third consecutive quarter in the CommSec State of the States report. The state’s strong performance is driven by robust retail spending, low unemployment, and significant investments in housing and infrastructure.
Investor Sentiment: A Shift Towards Cautious Optimism
Investor sentiment has rebounded to pre-trade tension levels, with Bank of America’s Global Fund Manager Survey indicating a rise in the sentiment index to 3.3 in June 2025—the highest since March. Fund managers have reduced cash holdings to a three-month low and increased investments in emerging markets, energy, and bank stocks. Confidence in corporate finances has risen, with more firms seen as underleveraged than overleveraged for the first time since 2015.
Looking Ahead
Experts predict that Perth’s property market will continue to perform well in the coming years, driven by factors such as population growth, infrastructure development, and a stable economy. Investors and homebuyers are advised to stay informed and consider long-term trends when making decisions.
In summary, Western Australia’s real estate market in mid-2025 presents opportunities for both buyers and investors, particularly in Perth. While regional areas may face challenges, the overall outlook remains positive. Staying informed and seeking professional advice will be key to navigating this dynamic market.
