Earlier this morning saw the release of the quarterly Australian GDP figures which missed their already adjusted target of 0.6%. Coming in at 0.5% therefore demonstrating steady if not astonishing growth in the second quarter.
In comparison to last year the economy expanded 3.3% with GDP matching if not exceeding economist’s targets. Terms of trade increased 2.3% with the biggest contributors including the mining, financial services, Public administration and construction sectors. Wages were also up for the first time in roughly 3 years.
Government spending was up 2.4% and came in the form of infrastructure improvements and government consumption including AU$180m investment in pharmaceutical programs and the acquisition of three Chinook helicopters.
The report marked 25 years without recession for Australia and was described as ‘’tribute to every Australian who has gone out there, gone to work, got a job, that is running or has started a business’’ by Scott Morrison treasurer Australia Treasurer.
However, many remain prudent highlighting the transition from the mining sector and the ongoing inflationary pressures which motivated the Reserve bank of Australia to slash rates to record lows as key hurdles to the economy.
Following the announcement, the Australian dollar gained against the USD peaking at 0.769, it currently sits around 0.7673. AUD/EUR currently 0.682 and AUD/GBP 0.575.
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