Home Tags Posts tagged with "australia economic growth"

australia economic growth

0

According to the Australian Bureau of Statistic, the country’s gross domestic product (GDP) grew less than expected in Q2 2015 as the economy struggled to gain momentum.

The Australian economy expanded 0.2% from the previous quarter and was up 2% compared with the same period last year.

Quarterly growth of 0.4% had been widely expected, while the annual rate was forecast to be up 2.2%.

Growth was hit by a “significant” decline in mining and construction activity as exports also fell.

Mining production fell 3% in Q2 2015 as demand slowed from China, Australia’s biggest trading partner.Australia slowdown 2015

The economy had grown a strong 0.9% in Q1 2015, its fastest pace in four quarters.

The data comes a day after the Reserve Bank of Australia kept interest rates on hold at a record low of 2%.

The central bank expects growth of 2.25% this year, but some economists said those forecasts could be too optimistic and that rate cuts could be back on the agenda.

In reaction to the data, the Australian dollar fell to a six-and-a-half year low of $0.6986 against the US dollar, down 0.4% for the day.

It had not fallen below $0.70 since 2009.

However, a lower currency is helping to boost the economy as it tries to move on from its mining-led growth.

Household spending supported growth in the period, rising by 0.5%.

Australian shares were also down with the S&P/ASX 200 index lower by 1.1% to 5,038.80 after the data came out.

0

Australia has reported better-than-forecast growth numbers for Q2 2013, boosted by gains in consumer spending.

Australia’s gross domestic product (GDP) expanded 2.6% during the quarter, from a year earlier. Compared with the previous quarter, growth was 0.6%.

Most forecasts were for an annual growth closer to 2.5%.

Analysts said the data was likely to see the Australian central bank hold back on easing its policies further.

Australia has reported better-than-forecast growth numbers for Q2 2013, boosted by gains in consumer spending

Australia has reported better-than-forecast growth numbers for Q2 2013, boosted by gains in consumer spending

“This is probably a touch above what the Reserve Bank of Australia was expecting and this would decrease the probability of a near term rate cut,” said Matthew Johnson, an interest rate strategist at UBS.

Australia’s central bank, which has lowered borrowing costs to a record low in recent months, kept rates unchanged as it met on Tuesday.

Australia’s economy, which enjoyed robust growth in recent years, has seen its growth rate slow of late.

One of the biggest drags has been the slowing demand for its natural resources such as iron ore.

The sector has been hurt by a decline in demand from countries such as China, triggering concerns that Australia’s economic growth may dip further.

At the same time, other sectors of the economy have not picked up enough speed to offset the slowdown in mining.

Analysts said that while the latest numbers had helped allay some fears of a sharp slowdown, the economy was still under pressure.

Brian Redican, a senior economist at Macquarie Bank, said the latest numbers were a continuation of “this distinctly sub-trend growth that we’ve seen over the last nine months now”.

“It doesn’t suggest that the economy is falling into a hole yet, but there aren’t really signs that we’re going to break out of this rut either.”

[youtube ENuThA2fSbw]

© © 2011 - 2023 BelleNews.com