Progress within the Australian economic system fell to its weakest charge in nearly a decade within the first three months of the yr, because the nation grapples with a housing downturn and a slowing Chinese language economic system.
Information revealed by the Australian Bureau of Statistics on Wednesday confirmed that the economic system grew by simply 1.eight per cent yr on yr within the first quarter, and down from 2.three per cent yr on yr within the previous fourth quarter. Whereas that was according to forecasts from economists polled by Reuters, it’s Australia’s worst quarterly progress exhibiting because the finish of 2009.
On a quarterly foundation, the Australian economic system expanded by zero.four per cent within the January to March interval, under Reuters’ estimates of zero.5 per cent progress.
Australia’s economic system has skilled one of many longest durations of steady progress within the developed world — the final time it skilled a year-on-year contraction was 1991 — due primarily to its excessive charges of inhabitants progress and bountiful mineral sources. However it’s battling challenges posed by slower progress in China, a home housing downturn and weak shopper spending that some economists have warned may finish its report run.
On Tuesday, authorities knowledge confirmed that retail gross sales slipped unexpectedly in April, underscoring how steep falls in home costs are rippling by the economic system. Unemployment ticked as much as 5.2 per cent in April, from round 5 per cent in earlier months.
That prompted Australia’s central financial institution on Tuesday to reduce rates of interest for the primary time in three years, to a report low of 1.25 per cent. The Reserve Financial institution of Australia has signalled it may drive rates of interest even decrease in its bid to help progress and drive inflation in the direction of its 2 to three per cent goal charge.
The Australian greenback was little modified versus the US greenback instantly following the GDP launch.