Australia Economic Outlook
June 21, 2022Sequential GDP growth softened but beat market projections in the first quarter. Consumer spending slowed considerably due to a normalization of the pace of growth and the spread of the Omicron variant. Meanwhile, exports shrank at a sharper pace amid a less favorable external environment. Activity is seemingly expanding at a healthy pace in Q2. Consumer spending has likely continued to increase, supported by accumulated savings, as suggested by a tight labor market in April and May and retail sales growth in April. That said, plunging consumer sentiment throughout the quarter calls for caution. Moreover, falling business confidence in April and May indicates cooling business investment. Meanwhile, in a bid to address the country’s power crisis and avoid potential blackouts, authorities recently assumed emergency powers to block coal exports.
Australia Economic GrowthThe economy looks set for a healthy expansion this year. Solid labor market dynamics, pent-up spending and faster wage growth should feed household spending. Moreover, the external sector will benefit from sustained global demand for commodities and the reopening of borders. Global supply disruptions and tensions with China pose risks. FocusEconomics panelists project GDP to expand 3.9% in 2022, which is down 0.1 percentage points from last month’s estimate. In 2023, the economy is seen growing 2.7%.
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
September 7, 2022
Economic activity increased 0.9% on a seasonally-adjusted quarter-on-quarter basis in Q2, following the previous quarter's 0.7% expansion.
September 6, 2022
Retail sales expanded 1.3% in month-on-month seasonally-adjusted terms in July, up from June’s 0.2% increase. Looking at the details of the release, food retailing, department store sales and clothing and footwear sales expanded, as did cafes, restaurants and takeaway food services sales.
September 6, 2022
At its monetary policy meeting on 6 September, the Reserve Bank of Australia (RBA) hiked the official cash rate (OCR) from 1.85% to 2.35%, as had been widely expected by markets.
August 18, 2022
Seasonally-adjusted employment decreased by 40,900 in July, following 88,400 jobs added in June.
August 9, 2022
The Westpac-Melbourne Institute consumer sentiment index decreased to 81.2 in August from 83.8 in July, marking the lowest reading since August 2020.