Australia Economic Outlook
November 17, 2020The economic recovery was seemingly limited in Q3, following Q2’s record GDP contraction. On the production side, business confidence—despite improving from Q2—remained entrenched in pessimistic territory. This, coupled with a sizable contraction in merchandise exports, points to still-weak private sector activity. Meanwhile, elevated uncertainty and the lockdown in Victoria seemed to weigh on consumer confidence and constrain spending in Q3: Retail sales contracted month-on-month in both August and September. Moreover, the labor market shed jobs at the tail end of the quarter, likely further dragging on private consumption. Moving to Q4, the lifting of lockdown measures in Melbourne in late October bodes well for the recovery. Furthermore, the adoption of an expansionary budget for FY 2021 boosted consumer and business confidence at the beginning of the quarter and should support activity ahead.
Australia Economic GrowthThe economy is projected to return to growth in 2021, following this year’s pronounced contraction. A recovery in household spending and fixed investment, supportive fiscal and monetary policy measures, and the gradual reopening of the global economy should fuel the rebound. However, potential further restrictions at home and abroad pose a downside risk. FocusEconomics panelists project GDP to expand 3.2% in 2021, which is unchanged from last month’s estimate. In 2022, the economy is seen expanding 3.3%.
Australia Economy Data
5 years of Australia economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||1.37||1.47 %||Dec 31|
|Exchange Rate||0.70||0.05 %||Dec 31|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Australia Economic News
May 5, 2021
At its monetary policy meeting on 4 May, the Reserve Bank of Australia (RBA) decided to keep the cash rate unchanged at the all-time low of 0.10%.
April 28, 2021
In the first quarter of 2021, consumer prices rose 0.6% over the previous quarter, following a 0.9% increase in Q4 2020.
April 21, 2021
Nominal retail sales in March increased 1.4% over the previous month in seasonally-adjusted terms, swinging from February’s 0.8% drop and beating market expectations of a 1.0% rise, according to preliminary figures.
April 19, 2021
The Westpac-Melbourne Institute consumer sentiment index surged to 118.8 in April from 111.8 in March, logging the strongest reading in over 10 years.
April 19, 2021
The business confidence index produced by National Australia Bank (NAB) dropped to 15.5 points in March from 17.8 points in February.