Australia is on track to have the developed world’s strongest economy and lower official interest rates through the next 18 months as the rest of the globe struggles to deal with Donald Trump’s ongoing tariff war.

The OECD on Tuesday warned the global economy faced substantial risks, most driven by policy changes out of the White House, but Australia could be one of the world’s bright spots albeit with growth that would ordinarily be considered sub-par.

Australia’s economic growth is expected to lift to be the highest of major developed nations in 2026. Credit: Rhett Wyman

Australia’s economy is forecast to expand by 1.8 per cent this year and by 2.2 per cent in 2026. Among the major economies tracked by the OECD, only Turkey – with growth of 3.2 per cent this year and next – is exp

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