Australia: GDP growth accelerates in Q2
September 3, 2013
In the second quarter, GDP grew 0.6% over the previous quarter. The increase surpassed both the 0.5% expansion recorded in the first quarter and market expectations of a 0.5% rise. On an annual basis, GDP expanded 2.6%, which is up from the 2.5% expansion recorded in Q1.
The second quarter figure mainly reflected a rebound in domestic demand contribution, which offset a moderation in the external sector. Domestic demand rose 0.4% over the previous quarter, contrasting the 0.2% drop seen in the first quarter. Private consumption slowed from a 0.7% expansion in Q1 to a 0.4% increase in Q2 and fixed investment contracted 0.1% (Q1: -2.2% quarter-on-quarter). A positive shift in inventories also contributed to the Q2 acceleration.
On the external side of the economy, exports of goods and services rose 1.3%, up from the 0.9% expansion seen in Q1, while imports rose 1.6% (Q1: -3.2% qoq). As a result of the acceleration in imports, the external sector's net contribution to overall growth fell from 0.9 percentage points in the first quarter to zero percentage points in the second.
FocusEconomics Consensus Forecast panelists see the economy expanding 2.6% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel expects economic growth to accelerate to 3.1%.
Author: Armando Ciccarelli, Head of Data Solutions