Australia Economic Outlook
May 22, 2018The economy entered the second quarter on solid footing, supported by rising business confidence and positive, albeit easing, consumer sentiment. Data for the first quarter shows that activity expanded at a solid and broadly stable pace after losing some steam in Q4 due to the completion of large mining projects. In Q1, retail sales continued to increase at a healthy pace, underpinned by solid labor market conditions, subdued inflation and positive consumer confidence. Moreover, non-mining private investment likely expanded at a robust pace, as suggested by upbeat business confidence. On 1 May, Fitch Ratings affirmed Australia’s credit rating at AAA with a stable outlook, citing the country’s solid fiscal parameters, successful governance and macroeconomic stability. In the political arena, on 8 May the government presented its budget for fiscal year 2018/2019. The budget includes measures such as income tax cuts for low- and middle-income earners, which could boost retail sales in H2.
Australia Economic GrowthThis year, rising non-mining business investment and public infrastructure spending should support growth. Moreover, resilient global demand and increased exports of liquified natural gas are expected to boost overseas sales. However, Australia’s bulky external debt leaves it exposed to potential capital outflows, while high levels of household debt represent a risk to financial stability. Met the why particular panelists expect GDP to expand 2.7% in 2018, which is unchanged from last month’s forecast, and 2.7% again in 2019.
Australia Economy Data
5 years of Australia economic forecasts for more than 30 economic indicators.
Get a sample report showing all the data and analysis covered in our Regional, Country and Commodities reports.
|Bond Yield||2.89||1.47 %||May 21|
|Exchange Rate||0.75||0.05 %||May 21|
|Stock Market||6,190||0.08 %||May 21|
Start Your Free Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Australia Economic News
May 18, 2018
The ruling Liberal-National coalition presented its budget for fiscal year 2018/2019 on 8 May.
Australia: Labor market reports strong outturn in April, revised data shows employment shrank in March
May 17, 2018
Seasonally-adjusted employment increased by 22,600 in April compared to the prior month, contrasting the revised 700 jobs shed in March (previously reported: +4,900 jobs) and overshooting analysts’ expectations of weaker job growth.
May 16, 2018
The Westpac-Melbourne Institute Index of Consumer Sentiment dipped to 111.8 in May from 112.4 in April.
May 8, 2018
Nominal retail sales growth in March was flat over the previous month in seasonally-adjusted terms, down from February’s 0.6% increase and coming below market expectations of a 0.3% rise.
May 7, 2018
The business confidence index produced by the National Australia Bank (NAB) increased to 11 points in April from 8 points in March.