- Australia's terms of trade are much lower than they were in recent years,

- The world economy continues to grow at a lower than average rate. Several developed economies have recorded improvement in conditions over the past year, but the conditions are more difficult for a number of emerging market economies.

- The growth rate of China's economy continues to slow, although the recent actions offers support near-term.

- Commodity prices are above recent lows, but it should be a very significant decline in the past few years.

- Financial markets have been volatile recent, as investors re-evaluate the assets after the referendum in the UK.

- Any consequences of the referendum results on global economic activity remains to be seen.

- Recent data point to the continuing overall growth in Australia, despite the very large decline in business investment.

- Other areas of domestic demand and exports are expanding.

- Labour market indicators were more mixed lately, but they are consistent with a moderate pace of expansion of employment in the near future.

- Inflation has been relatively low, given the very depressed growth in labor costs and a very low cost in other countries.

- Low interest rates are supporting domestic demand and the low exchange rate.