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%.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- Sunday Business with Andrew Patterson
- Business Week in Review with Grant Walker & Andrew Patterson
- “The justice system never troubled itself in the most elementary way to get the facts to decide the case” - Rodney Hide
- Hunter's Corner: Is the ASX taking our best and brightest?
- Cameron Officer on the car of the week: Mercedes-Benz C 300 Coupe