A protracted war in the Middle East could push Australia into a recession within months and push unemployment above 6 per cent, with a permanently higher oil price looking increasingly likely after the failure of peace talks between the Trump administration and Iran at the weekend.
Even if the conflict were to be settled by the end of June, economic growth would more than halve to 0.7 per cent this year and unemployment would rise to more than 5 per cent for the first time since 2021, according to new modelling conducted by Deloitte for The Australian Financial Review.
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