This report analyzes the economic performance of Australia, focusing on the slowdown experienced in the second half of 2018. It examines key factors contributing to this slowdown, including the housing market decline, the economic slowdown in China, falling household consumption, and declining wage growth. The report delves into the current state of the Australian economy, presenting statistical data and figures related to GDP and employment growth. It explores the influence of both global and domestic factors on Australia's economic landscape, with particular attention to the impact of the housing market in Sydney and Melbourne. The report also discusses the role of the Reserve Bank of Australia in setting monetary policy and adjusting the cash rate. Furthermore, the report provides an overview of the current economic situation, highlighting key factors such as consumption, investment, government expenditure, and net export. The report also provides a detailed analysis of the housing market, including median house prices and mortgage arrears. The report further investigates the economic slowdown of China and its impact on Australia, including trade relations, commodity prices, and financial markets. The report concludes with a discussion of growth expectations and the design of monetary policy.