We see spending on housing and household consumption spending as the key elements determining near-term strength in GDP growth, but also longer-term weakness. Reasons abound why Australia’s annual GDP growth rate is likely to moderate over the next year or two. The list includes 1) Moderating growth in Australia’s major international trading partner economies. 2) Weak growth in Australian household disposable income with no end in sight to slow wages growth. 3) Over-supply developing in parts of the new housing market. 4) Extremely high household indebtedness starting to add to reasons why banks are periodically tightening lending standards. 5) Government policy focus on limiting growth in government spending. While this list points to lower GDP growth at some point, stronger annual growth may have occurred in the recent past extending into the immediate future.