Australian economic growth will be solid despite a falling housing market but not as good as global growth, according to the latest quarterly Business Outlook from Deloitte Access Economics.

Deloitte forecasts 3.3 per cent GDP growth in Australia this financial year, up from 2.9 per cent last year, but will slip to 3.2 per cent next year.

The median value of Sydney homes is dropping by $1000 a week. Credit:Peter Rae

“Despite the house price fall we had to have, Australia’s growth has continued to accelerate, and our ongoing strength is forecast to be good enough — at a smidge above trend both this year and next — to keep job gains solid and unemployment edging down,” says the main author Chris Richardson.

“And, with inflation gradually on the rise, that mix should see the recovery in wages continue, albeit at snail’s pace.