AI Impact Scenarios Australia

AI IMPACT: GDP

Real GDP growth, annual % change

Baseline:

• Economic growth holds near trend, supported by AI-linked investment in physical infrastructure and population-driven demand. • The baseline assumes elevated asset valuations persist, supporting household consumption and an increasingly strong pipeline of investment into AI infrastructure. • Real GDP growth holds in the 2% to 3% range, softer near-term amid a cyclical slowdown before recovering and normalising, supported by AI-led productivity gains.

2025 2026F 2027F 2028F 2029F 2030F

S1: Upside - Expansion

2.0% 2.1% 2.6% 4.1% 4.4% 4.2%

S2: Baseline

2.0% 1.7% 1.8% 2.9% 2.9% 2.4%

S3: Downside - AI Bust

2.0% 1.0% -0.3% 3.7% 4.1% 3.1%

S4: Downside - Displacement

2.0% 1.8% 2.1% 3.5% 3.8% 3.5%

Source: Cushman & Wakefield Research

Cushman & Wakefield

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