Australia Economic Outlook
February 25, 2020The economy apparently recovered some steam in the fourth quarter of 2019, after weak wage gains and falling fixed investment suppressed growth in the third quarter. Better business conditions and lower interest rates suggest private sector activity improved in Q4; however, lackluster retail sales and downbeat consumer confidence spell trouble for household spending, while cooling export growth points to a weakening external sector. Turning to the first quarter of this year, protracted pessimism among consumers in January-February, weaker business conditions and an uptick in the unemployment rate in the first month of the quarter as well as spillovers from the coronavirus hint at a weak economic showing. That said, rising property prices in January reflect a continued revival in the housing market which should bode well for activity going forward.
Australia Economic GrowthThis year, growth should gain some traction, thanks to stronger domestic demand. A pick-up in wage growth, coupled with a tight labor market and modest inflation, is expected to support household spending, while investment should benefit from lower interest rates and a rebound in the housing market. However, the coronavirus and reigniting trade tensions cloud the outlook. FocusEconomics panelists project GDP to expand 2.1% in 2020, which is down 0.1 percentage points from last month’s forecast. In 2021, growth is seen strengthening to 2.5%.
Australia Economy Data
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|Bond Yield||1.37||1.47 %||Dec 31|
|Exchange Rate||0.70||0.05 %||Dec 31|
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Australia Economic News
March 19, 2020
At an extraordinary monetary policy meeting held on 19 March, in a bid to tame the economic and financial spillovers from coronavirus (Covid-19), the Reserve Bank of Australia (RBA) decided to cut the cash rate from 0.50% to 0.25%, a fresh all-time low.
March 19, 2020
Seasonally-adjusted employment rose by 26,700 in February, following a revised 12,900 job addition in January (previously reported: +13,500).
March 18, 2020
Amid heavy stock market losses and in a bid to shield the economy from the impact of coronavirus, the government unveiled an AUD 17.6 billion stimulus package on 12 March.
March 12, 2020
The Westpac-Melbourne Institute consumer sentiment index rose to 91.9 in March, from 95.5 in February, due to coronavirus concerns and associated financial markets turmoil.
March 11, 2020
The business confidence index produced by National Australia Bank (NAB) dropped to minus 3.6 points in February, from minus 1.0 points in January, dragged down by rising concerns on the economic impact of Covid-19.