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
February 21, 2021
The business confidence index produced by National Australia Bank (NAB) jumped to 10.0 points in January from 4.7 points in December.
February 21, 2021
The Westpac-Melbourne Institute consumer sentiment index rose to 109.1 in February from 107.0 in January.
February 19, 2021
Nominal retail sales in January increased 0.6% over the previous month in seasonally-adjusted terms, swinging from December’s 4.1% slump, according to preliminary figures. A healthy increases in food retailing led the rises, while declines were recorded in clothing, footwear and personal accessory retailing, household goods retailing, and department stores—which were negatively affected by a three day lockdown in Brisbane.
February 18, 2021
Seasonally-adjusted employment increased by 29,100 in January, following 50,000 jobs gain in December.
February 5, 2021
Nominal retail sales in December plunged 4.1% over the previous month in seasonally-adjusted terms, swinging from November’s 7.1% surge. Particularly pronounced decreases were recorded in household goods retailing, clothing, footwear and personal accessory retailing, department stores and other retailing, while cafes, restaurants and takeaway food services saw a healthy increase. In annual terms, retail sales grew 10.3% in December, following November’s 12.1% surge.