Australia posts second-quarter growth of 2.1%, beating expectations
The GDP print will allow the Reserve Bank of Australia room to go ahead with its policy tightening as it seeks to curb inflation.
TL;DR
- Australia's Q2 economic growth was 2.1% year-on-year, beating an expected 1.8%.
- Quarter-on-quarter GDP rose 0.4%, surpassing the anticipated 0.3%.
- Growth was fueled by private demand and mining exports.
- Household spending remained subdued at 0.4% due to elevated prices and reduced travel.
- The stronger GDP provides justification for the Reserve Bank of Australia to continue policy tightening.
- July inflation was 3.5%, higher than the 3.3% forecast.
- The RBA expects inflation to return to its target range by late 2027.