Topic analysis

Feeling gloomy about the economy? The ‘vibecession’ has arrived in Australia – but experts are less worried

Over 60% of Australians believe Australia is either in a recession or will enter one within 12 months, reflecting widespread economic pessimism driven by high cost of living, rising interest rates, and recent tensions in Iran. Most economists estimate a low chance of recession—20% on average per a Bloomberg survey, or negligible per Commonwealth Bank—forecasting slowed growth rather than outright contraction, even in a worst-case scenario involving a prolonged Strait of Hormuz closure.