Australian economy to suffer in 2015: Morgan Stanley

Investment bank Morgan Stanley on Wednesday released a report estimating that Australia's economic growth in 2015 will slow to below 2 percent and unemployment will rise to nearly 7 percent.

The bank's team of Asia-Pacific researchers said Australia had not made a successful transition from its dependence on mining- related infrastructure to a more balanced growth.

It said Australia was suffering in declining trade and the property boom had not yet translated into broader business expansion.

"In our view, the combination of a deeper-than-expected terms of trade shock and the missed opportunity to springboard consumer spirits off the housing recovery leave the near-term growth profile anaemic," Morgan Stanley said in a statement.

"We now forecast calendar year (gross domestic product) to fall below 2 percent and settle at 1.9 percent, well below the current consensus of 2.9 percent."