Jul 7, 2026 – 9.50amAustralia is facing its longest stretch of weak economic growth since the early 1990s recession, but stubborn inflation pressures are still expected to force the Reserve Bank to raise interest rates again, according to a new report by Deloitte Access Economics.The firm slashed its outlook for the Australian economy in its latest set of quarterly forecasts on Tuesday, predicting the economy will grow by just 1.3 per cent this financial year and 1.9 per cent in 2027-28 – marking the most prolonged stretch of sub-2 per cent growth in three decades.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles