Retail spending growth has cooled over the past year, with the slowdown in the housing market a key drag. Looking ahead, increases in government spending will help support demand. Nevertheless, spending growth is likely to remain slower than in previous years.

Wage inflation is set to rise over the next few years. In part, that’s due to planned large increases in the minimum wage. However, we expect that continuing competitive pressures will limit the pass-through to retail prices, writes Satish Ranchhod.

Significant changes in economic policy are on the cards for 2018. At the same time, several key drivers of economic growth have been dissipating and consumer confidence has dropped away, writes Westpac senior economist, Satish Ranchhod.