The number: Australia’s gross domestic product (GDP) grew 0.2 per cent in the second quarter of 2024, following a 0.1 per cent rise in the March quarter, slightly under Reuters forecasts of a 0.3 per cent increase but in line with Bloomberg.
On an annual basis, the economy expanded 1 per cent, its slowest pace since the early 1990s, apart from the pandemic, and follows a 1.1 per cent gain in the 12 months to March. Reuters had forecast a rise of 1 per cent and Bloomberg 0.9 per cent. The data also showed that GDP per capita fell for the sixth quarter, down 0.4 per cent in June.
Why it matters: The Reserve Bank of Australia wants the economy to slow to get inflation back to target. It has lifted the cash rate to 4.35 per cent since 2022, yet price growth is proving sticky.
What has changed: GDP partials released this week were a mixed bag. Net exports were well softer than expected, but government spending increased sharply and beat forecasts.
What next: The August employment report will be released on September 19, ahead of the RBA’s policy meeting on September 24 when it is widely expected to keep rates on hold for a seventh straight time.