Australia's first-quarter economic growth misses estimates on severe weather, weak demand
Australia's economy grew less than anticipated in the first quarter, with a 2.5% increase compared to the previous year. This growth fell short of economists' expectations of 2.6% and was affected by weak household spending and severe weather disruptions. The Reserve Bank of Australia is considering further interest rate hikes amid concerns over inflation and the impact of global events on consumer demand.
- ▪Australia's GDP grew 2.5% year-on-year in the first quarter, missing the expected 2.6%.
- ▪Quarter-on-quarter growth was 0.3%, below the forecast of 0.5%.
- ▪The Reserve Bank of Australia raised its cash rate target to 4.35% in May due to inflation concerns.
Opening excerpt (first ~120 words) tap to expand
Australia's economy expanded less than expected in the first quarter, as subdued household spending, a pullback in government consumption and severe weather disruptions to mining and exports weighed on growth. The country's GDP expanded 2.5% in the first three months this year, compared to a year earlier, missing economists' expectations for a 2.6% growth, data from the Australian Bureau of Statistics showed Wednesday. On a quarter-on-quarter basis, Australia's GDP grew 0.3% compared with 0.5% forecast in a Reuters poll, and slowing from 0.8% growth in the prior quarter. Despite the miss, the economic momentum has prompted traders to wager on further rate hikes as the Reserve Bank of Australia seeks to keep prices in check.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at US Top News and Analysis.
Discussion
0 commentsMore from US Top News and Analysis
