Australian GDP figures may have avoided recession

Australia’s latest gross domestic product (GDP) data is due out today with economists raising hopes that the lucky country will narrowly avoid a technical recession.

Exports data released yesterday delivered more promise than expected, showing that the current account deficit narrowed to A$4.6 billion in the first quarter from a $6.4 billion deficit in the fourth quarter of last year.

Net exports are now expected to add 2.2 percentage points to GDP growth for the quarter.

This means today’s GDP data should show the Australian economy expanding over the March quarter, after contracting 0.5% in the December quarter, JP Morgan economist Helen Kevans forecast.

Other economists were more conservative, sticking by forecasts of contraction.

If Australia does not report two consecutive quarters of negative growth, it misses the technical definition of a recession.

In other Australian news yesterday, the Reserve Bank left the official cash rate unchanged at 3%.
 


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7282 -0.0001 -0.01%
AUD 0.9496 0.0030 0.32%
EUR 0.6481 -0.0008 -0.12%
GBP 0.5610 0.0025 0.45%
HKD 5.6459 0.0007 0.01%
JPY 73.9540 0.4370 0.59%

Commods

Commodity Price Change Time
Gold Index 1319.6 -1.410 2016-09-29T00:
Oil Brent 49.8 0.570 2016-09-29T00:
Oil Nymex 47.8 0.780 2016-09-29T00:
Silver Index 19.2 0.070 2016-09-29T00:

Indices

Symbol Open High Last %
NZX 50 7343.4 7361.1 7343.4 0.24%
NASDAQ 5311.3 5317.0 5318.5 -0.93%
DAX 10545.6 10575.3 10438.3 -0.31%
DJI 18322.9 18366.2 18339.2 -1.07%
FTSE 6849.4 6941.1 6849.4 1.02%
HKSE 23435.3 23484.4 23739.5 -1.72%
NI225 16474.5 16497.5 16693.7 -1.46%
ASX 5471.3 5471.3 5471.3 -0.65%