Forex News – Australian economy grows at slower pace in Q3
December 4, 2013 12:45 pm
GDP data released today showed Australia’s economy expanded at a slower pace than expected in the third quarter suggesting that the natural resources-rich country is facing some headwinds.
Contributing factors that affect the growth picture in Australia have been in part due to a slowdown in China, which is Australia’s biggest trading partner, while the end of the massive mining boom has had a major role too.
According to a GDP report released by the Australian Bureau of Statistics today, the economy grew at a seasonally adjusted 0.6% quarter-over-quarter in the three months from July to September, after expanding by a revised 0.7% in the second-quarter. Forecasts were for a 0.8% growth rate.
Year-over year the economy grew by 2.3% in the third quarter of 2013. That was below forecasts of 2.6% and the country’s worst quarterly expansion rate this year. The second quarter year-over-year growth rate was 2.5%.
While certain components of GDP did show some improvement, the exports and imports component were disappointing.
Balance of payments data released yesterday showed that export volumes grew by 0.1% as import volumes fell by 2.4% for the third-quarter. Net exports were expected to add 0.7% to third-quarter GDP.
The current account deficit for the third-quarter widened to $12.7 billion from $12.1 billion in the previous quarter.
The Reserve Bank of Australia has been trying to support the economy by lowering interest rates to a record low 2.5%. However the disappointing growth data could keep interest rates lower for longer to try and help the economy grow.
The Aussie fell against the US dollar after the data, reaching a new 3-month low at $0.9007.
GDP data released today showed Australia’s economy expanded at a slower pace than expected in the third quarter suggesting that the natural resources-rich country is facing some headwinds.
Contributing factors that affect the growth picture in Australia have been in part due to a slowdown in China, which is Australia’s biggest trading partner, while the end of the massive mining boom has had a major role too.
According to a GDP report released by the Australian Bureau of Statistics today, the economy grew at a seasonally adjusted 0.6% quarter-over-quarter in the three months from July to September, after expanding by a revised 0.7% in the second-quarter. Forecasts were for a 0.8% growth rate.
Year-over year the economy grew by 2.3% in the third quarter of 2013. That was below forecasts of 2.6% and the country’s worst quarterly expansion rate this year. The second quarter year-over-year growth rate was 2.5%.
While certain components of GDP did show some improvement, the exports and imports component were disappointing.
Balance of payments data released yesterday showed that export volumes grew by 0.1% as import volumes fell by 2.4% for the third-quarter. Net exports were expected to add 0.7% to third-quarter GDP.
The current account deficit for the third-quarter widened to $12.7 billion from $12.1 billion in the previous quarter.
The Reserve Bank of Australia has been trying to support the economy by lowering interest rates to a record low 2.5%. However the disappointing growth data could keep interest rates lower for longer to try and help the economy grow.
The Aussie fell against the US dollar after the data, reaching a new 3-month low at $0.9007.
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