Australia: Q2 economic growth likely remained soft – NAB
|Analysts at National Australia Bank suggest that the Australia’s economic growth likely remained soft in Q2 2019, with GDP rising by 0.5% q/q.
Key Quotes
“While growth is slightly stronger than in the March quarter, boosted by a sharp lift in net exports, private sector growth likely contracted again, with consumption still soft, dwelling investment falling further and a marginal drag from business investment.”
“A weak outcome would likely trigger a further downgrade to the RBA’s outlook, notwithstanding support from income tax refunds, cash rate cuts, a lower exchange rate and a stabilising housing market.”
“More importantly given the RBA’s focus on the labour market, persistent weakness in private demand points to unemployment edging higher. We continue to expect the RBA will lower rates by November, but acknowledge the risk of an additional easing and/or a move to unconventional policy next year should the economy weaken further, particularly now that global risks have intensified.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.