FLAU - Australia: GDP Growth Slows Further

2024-06-05 03:05:00 ET

Summary

• First quarter 2024 GDP growth slowed to just 0.1% QoQ. This brings the annual growth rate down from 1.5% to 1.1%.
• But while growth is slowing, inflation remains sticky - providing the Reserve Bank of Australia with a policy headache.
• Until rates start to come down, the outlook for investment in Australia remains fairly bleak.

By Robert Carnell

1Q24 GDP was weaker than expected

At just 0.1% QoQ, the first quarter 2024 GDP result continues a remarkably steady slowdown in sequential growth since the fourth quarter of 2022, when GDP grew at a 0.8% QoQ pace. There was an upward revision to the 4Q23 growth numbers, which now show 0.3% growth, up from an initially reported 0.2% figure. But the year-on-year growth rate still fell to 1.1% YoY, and further declines look likely in the coming quarters....

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