Australia: GDP moderates in Q2
September 10, 2012
In the second quarter, GDP expanded 3.7% over the same period last year, which was below the 4.5% expansion recorded in the first quarter (previously reported: +4.3% year-on-year) but a notch above market analysts expectations of a 3.6% rise. While both domestic demand and the external sector improved their contribution to overall economic growth, the moderation was driven by a negative shift in inventories. Domestic demand expanded 5.8% annually, up from the 5.6% rise seen in the first quarter. While private consumption slowed from a 4.4% expansion in Q1 to a 4.0% rise in Q2 2012, fixed investment expanded a strong 11.0%, up from the 9.9% increase recorded in the previous quarter. Exports of goods and services rose 6.6%, up from Q1's 6.2% expansion, while imports increased 9.1%, marking a moderation compared to the 11.0% expansion observed in the previous quarter. As a result, the external sector's net contribution to overall growth rose from minus 1.3 percentage points in the first quarter to minus 0.8 percentage points in the second. Quarterly figures corroborate the moderation seen in annual figures, as the economy expanded a seasonally adjusted 0.6% over the previous quarter, which was less than half the 1.4% increase recorded in Q1.
Author: Armando Ciccarelli, Head of Data Solutions