Australia Economic Outlook
May 21, 2019Australians defied pre-election opinion polls, and handed a surprise victory to the ruling center-right Liberal–National coalition. The coalition secured an absolute majority in the Lower House of Parliament, which will allow Prime Minister Scott Morrison to govern without the support of independents. Its emphasis on improving the economy and its stronger credentials in economic management likely tipped the scales in favor of the conservative coalition. Financial markets breathed a sigh of relief in response; the stock market surged to 11-year highs on Monday, while the AUD climbed on the same day. Elections come amid sluggish economic growth, defined by subdued consumer spending as highlighted by Q1’s weak retail sales. That said, exports were buoyant and wage growth picked up in the same quarter, while consumer sentiment gained some ground in April-May, and there are signs that the housing market may have left the worst behind.
Australia Economic GrowthWhile robust commodity exports will support the economy, falling real estate investment and weaker consumer spending will limit GDP growth this year. That said, the election outcome should boost investor confidence and could support fixed investment. Escalating global trade tensions and China’s economic slowdown represent the key downside risks to the outlook. Met the why particular panelists expect GDP to expand 2.2% in 2019, which is down 0.1 percentage points from last month’s forecast, and 2.6% in 2020.
Australia Economy Data
5 years of Australia economic forecasts for more than 30 economic indicators.
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|Bond Yield||1.11||1.47 %||Jun 13|
|Exchange Rate||0.69||0.05 %||Jun 13|
|Stock Market||6,619||0.08 %||Jun 13|
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Australia Economic News
June 13, 2019
Seasonally-adjusted employment increased by 42,300 in May from the previous month, following the revised 43,110 jobs added in March (previously reported: +28,110 jobs) and more than doubling analysts’ expectations of a gain of 17,500.
Australia: Consumer sentiment dips on weak national accounts but remains in optimistic territory in June
June 12, 2019
The Westpac-Melbourne Institute consumer sentiment index dipped to 110.7 in June from 111.3 in May.
June 11, 2019
The business confidence index produced by National Australia Bank (NAB) jumped to 7.3 points in May from April’s revised plus 0.1 points (previously reported: minus 0.3 points).
June 5, 2019
Australia’s economy gained steam in the first quarter, supported by a stronger external sector and a softer contraction in fixed investment, according to figures released by Australia’s Statistical Institute (ABS) on 5 June.
June 4, 2019
Nominal retail sales in April dipped 0.1% over the previous month in seasonally-adjusted terms, swinging from March’s 0.3% uptick.