Recession off the cards but Australia faces dreary outlook, economists say

De-escalation of war in the Middle East has lowered oil prices and eased fears of economic downturn but households are still feeling the pinch

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Fears of a recession have fallen away, with economists saying that Australia is set to safely navigate the biggest global oil supply shock in history even as they warn of sub-standard growth in the year ahead.

The de-escalation of the Middle East conflict has been accompanied by a major retreat in global oil prices back to prewar levels, essentially removing the worst-case scenarios contemplated before Donald Trump’s wobbly ceasefire with Iran was announced in mid-June.