GDP in Australia
Australia - GDP (billions of U.S. Dollars)
Economic growth slows less than expected in the third quarter
Economic activity dropped 1.9% on a seasonally-adjusted quarter-on-quarter basis in Q3, contrasting the previous quarter's 0.7% expansion. Q3's reading came amid the reinstatement of lockdowns to contain the Delta variant of Covid-19. That said, it beat market analysts’ expectations of a sharper 2.7% plunge.
Household spending sank 4.8% in seasonally-adjusted quarter-on-quarter terms in Q3, contrasting the 1.0% expansion logged in Q2. In addition, fixed investment growth waned to 0.2% in Q3 from 3.2% in the previous quarter. More positively, government consumption growth picked up to 3.6% in Q3 (Q2: +1.3% s.a. qoq).
On the external front, exports of goods and services bounced back, growing 1.2% in the third quarter (Q2: -3.4% s.a. qoq), while imports of goods and services fell 4.0% in Q3 (Q2: +1.1% s.a. qoq).
Meanwhile, in annual terms, GDP growth slowed markedly to 3.9% in the third quarter, from 9.5% in the second quarter.
Commenting on Q3’s performance and the growth outlook, Lee Sue Ann, economist at United Overseas Bank, said:
“The latest GDP numbers were much better than expected, placing the economy in a better position for a recovery ahead. As this juncture, we look for a rebound in Q4 2021 as major states proceed with reopening plans, which will allow economic activity to recover. We expect Q4 2021 growth of around 1.5% yoy (+1.8% qoq), which will see full-year GDP for 2021 at 4.0%. However, the emergence of the new Covid-19 Omicron variant could potentially start taking a toll on the global outlook. This will not only pose a risk to the economic outlook for 2022, and also a need for patience on policy normalisation.”
Consensus Forecast panelists see the economy growing 3.5% in 2022, which is up 0.2 percentage points from last month’s forecast, and growing 2.9% in 2023.
Australia - GDP (USD bn) Data
|GDP (USD bn)||1,235||1,268||1,386||1,422||1,386|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||1.37||1.47 %||Dec 31|
|Exchange Rate||0.70||0.05 %||Dec 31|
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December 7, 2021
At its monetary policy meeting on 7 December, the Reserve Bank of Australia (RBA) decided keep the cash rate unchanged at the all-time low of 0.10%, and stated it will continue purchasing government bonds at the rate of AUD 4 billion a week until at least mid-February next year, in order to maintain accommodative financing conditions. The decision was underpinned by moderate inflationary pressures, as well as the ongoing economic recovery amid a fast vaccine rollout.
December 3, 2021
Economic activity dropped 1.9% on a seasonally-adjusted quarter-on-quarter basis in Q3, contrasting the previous quarter's 0.7% expansion.
December 2, 2021
Retail sales climbed 4.9% in month-on-month seasonally-adjusted terms in October, which followed September's 1.3% increase and benefited from easing Covid-19 restrictions.
November 11, 2021
Seasonally-adjusted employment fell by 46,300 in October, following 141,100 jobs shred in September.
November 11, 2021
The business confidence index produced by National Australia Bank (NAB) improved to 20.8 points in October from 9.6 points in September.