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Australian PM challenge will hinder policy agenda

Monday, February 9, 2015


Although a victory in the short term for Abbott, the narrow margin will only intensify doubts about his long-term prospects as party leader and as prime minister. The challenge continues a trend of instability across Australia's main political parties. The country is poised to enter a record 25th year of uninterrupted economic growth, yet has changed prime minister four times since 2007.


  • Australia will remain one of the most robust developed economies throughout 2015, with growth rates far above those of the EU.
  • The Reserve Bank's decision to cut interest rates indicates that there are worries of the impact of the China-induced mining slowdown.
  • Concerns in state capitals about housing bubbles will grow and may be an issue in the next federal election.

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