Australia Economic Outlook
November 14, 2017The economy remains in fairly good shape. The outlook for non-mining business investment has brightened, while strong public infrastructure spending is boosting growth. In addition, the unemployment rate dipped to a multi-year low in September. On the downside, retail sales were limp in Q3, a sure sign of continued meager wage growth, while household debt levels are high. At the end of October the High Court disqualified five members of parliament for holding dual citizenship, including deputy prime minister Barnaby Joyce. Several other MPs have also since resigned over the same issue. As a result, the government has lost its lower-house majority, and will have to rely on crossbenchers’ support to ensure political continuity. With several other MPs in the spotlight, the danger for the incumbent government is that more heads could roll in the coming months, worsening political instability and causing parliamentary gridlock going forward.
Australia Economic GrowthEconomic growth is likely to pick up next year despite potential political instability, buoyed by loose monetary policy, a rebalancing towards non-mining sectors and a stronger external sector, with the latter thanks in part to greater LNG exports. However, slow wage growth and high household debt will continue to drag on growth. FocusEconomics panelists expect GDP to expand 2.7% in 2018, unchanged from last month’s forecast, and 2.6% in 2019.
Australia Economy Data
5 years of Australia economic forecasts for more than 30 economic indicators.
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|Bond Yield||2.51||1.47 %||Dec 06|
|Exchange Rate||0.76||0.05 %||Dec 06|
|Stock Market||6,030||0.08 %||Dec 06|
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Australia Economic News
December 14, 2017
Seasonally-adjusted employment increased by 61,600 in November compared to the prior month, up sharply from October’s revised 7,800 increase (previously reported: +3,700) and significantly overshooting analysts’ expectations.
December 13, 2017
The Westpac-Melbourne Institute Index of Consumer Sentiment increased from 99.7 in November to 103.3 in December.
December 12, 2017
The business confidence index produced by the National Australia Bank (NAB) came in at 6 points in November, down from October’s revised 9 points (previously reported: +8 points).
December 5, 2017
Following an especially strong second quarter, the economy slowed in the third quarter according to figures recently released by the Australian Bureau of Statistics (ABS).
December 5, 2017
At its 5 December monetary policy meeting, the Reserve Bank of Australia (RBA) kept the cash rate at its all-time low of 1.50%, where it has been since August 2016.