PT Solid Gold Berjangka | Australia’s Economy Stays Subdued as Consumers Rein In Spending
MONETARY SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | Australia’s economy faced rising borrowing costs and high inflation in the three months through June, and consumers continued to sit tight.
Data released Wednesday by the Australian Bureau of Statistics showed that gross domestic product rose 0.2% from the previous quarter, in line with economists’ expectations. Year-on-year growth was 1%, up from an upwardly revised 1.3% and a forecast of 0.9%.
Catherine Keenan, head of national accounts at the ABS, said in a statement, “This was the lowest growth since 1991-92, including a modest recovery from the 1991 recession. GDP per capita declined for the sixth consecutive quarter.
The Australian dollar maintained its decline, as did the yield on the interest rate-sensitive 3-year Treasury note.
With annual growth slowing from a 10-year average of 2.4%, the data likely allayed concerns about demand-driven inflationary pressures. This suggests that the RBA may leave the cash benefit rate, currently at a 12-year high of 4.35%, unchanged for some time in order to assess the economy.
The RBA expects the second quarter to be the apex of the slowdown, with annual growth accelerating to 1.7% by the end of the year and recovering to 2.5% in the second half of 2025.
Bloomberg Economics expects growth to remain subdued this year as the cumulative effect of rising interest rates dampens household demand and housing-related activity.
Source: Bloomberg