Despite all the doom and gloom on Australia’s economy, could the worst be behind us?

The case for cautious hope on the Australian economy hinges largely on employment continuing to defy dismal consumer and business sentiment. Photograph: Bianca de Marchi/AAP

In a week dominated by headlines declaring the “weakest growth in decades” (excluding Covid) with an economy being “smashed” by the Reserve Bank, it might seem Australia teeters on the edge on an abyss.

For some households and businesses, the challenge of paying stratospheric housing costs amid 13-year-high interest rates will alas be overwhelming.