What is the objective for economic growth in terms of GDP for Australia?

The objective for economic growth in Australia is typically centered around achieving a GDP growth rate of approximately 3% per annum. This target is significant as it reflects a balance between promoting sustainable economic development and managing inflationary pressures. A growth rate of around 3% is generally viewed as sustainable for an advanced economy like Australia, allowing for improvements in living standards and job creation without leading to overheating in the economy.

This target is influenced by various factors, including the size and dynamics of the Australian economy, demographic changes, and productivity growth. Over time, setting a growth goal helps guide fiscal and monetary policies aimed at stimulating economic activity, ensuring that the economy remains resilient and capable of responding to global economic changes. Targets above this rate, such as 4% or 5%, may not be feasible over the long term without risking inflation or economic instability, while a target below 2% could indicate economic stagnation, which is undesirable for any growing economy.