Australia's first-quarter economic growth misses estimates on severe weather, weak demand
Key points
- Australia's economy lost momentum in the first quarter, as subdued household spending, a pullback in government consumption and severe weather disruptions to mining and exports dampened momentum.
- The country's GDP expanded 2.5% in the first three months this year, compared to a year earlier, shy of economists' expectations for 2.6% growth and slowing from 2.6% growth in the prior quarter, 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 decelerating from 0.8% growth in the prior quarter.
- The modest growth was partly driven by robust investment in data center machinery and equipment, the statistics bureau said.
- The Reserve Bank of Australia became the first central bank among developed economies to raise interest rates this year after the economy posted its strongest quarterly growth in nearly three years in the final quarter last year....
Quick Summary
Australia's economy lost momentum in the first quarter, as subdued household spending, a pullback in government consumption and severe weather disruptions to mining and exports
Why It Matters
This development is important because it may impact public opinion, policy decisions, and future developments related to Australia's first-quarter economic growth misses estimates o.
Key Takeaways
- Australia's economy lost momentum in the first quarter, as subdued household spending, a pullback in government consumption and severe weather disruptions to mining and exports dampened momentum.
- The country's GDP expanded 2.5% in the first three months this year, compared to a year earlier, shy of economists' expectations for 2.6% growth and slowing from 2.6% growth in the prior quarter, 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 decelerating from 0.8% growth in the prior quarter.
- The modest growth was partly driven by robust investment in data center machinery and equipment, the statistics bureau said.
- The Reserve Bank of Australia became the first central bank among developed economies to raise interest rates this year after the economy posted its strongest quarterly growth in nearly three years in the final quarter last year.
📌 Source: CNBC
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