Jim Chalmers is putting a positive spin on the economy, but is the outlook for Australia grim?
Key takeaways
- Treasurer Jim Chalmers hailed the boom in datacentres, which papered over much of the bad news in the economy.
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- The economy slowed sharply in early 2026 and Australians’ living standards are once again going backwards.
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Treasurer Jim Chalmers hailed the boom in datacentres, which papered over much of the bad news in the economy. Australia has not seen this pace of new business spending since the end of the mining investment boom nearly 15 years ago. Photograph: Hollie Adams/Reuters View image in fullscreen Treasurer Jim Chalmers hailed the boom in datacentres, which papered over much of the bad news in the economy. Australia has not seen this pace of new business spending since the end of the mining investment boom nearly 15 years ago. Photograph: Hollie Adams/ReutersAustralian economyAnalysisJim Chalmers is putting a positive spin on the economy, but is the outlook for Australia grim?Patrick ComminsThe economy was slowing even before the Middle East conflict and interest rate hikes started to bite, while the boom in datacentres was a rare bright spot
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The economy slowed sharply in early 2026 and Australians’ living standards are once again going backwards.