Sydney, Australia
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The Australian economy increased by 1.3% From year to year in the fourth quarter, accelerating for the first time since September 2023.
GDP growth overcame the expectations by 1.2% growth of economists surveyed by Reuters, and also exceeded 1.1% climbing expected by the Australian reserve bank.
The National Statistical Office stated that the growth was “modest”, but extensively, adding that “both public and private expenses contributed to the growth, supported by the increase in the export of goods and services.”
On the basis of a quarter of the GDP, it increased by 0.6%, overcoming expectations by 0.5% increase from Reuters survey and marking its fastest increase from the third quarter of 2022.
Data appears after the Australian Central Bank reduced comparative rates at your monetary policy meeting Last month, marking your first reduction in over four years, among economic slowness and soothing inflation.
In his Declaration of monetary policy Published last month, RBA stated that GDP growth in Australia is to increase in over 2025, and private demand expects to increase due to the increase in consumption of households.
RBA forecasts a GDP growth rate of 2.4% and 2.3% for 2025 and 2026, respectively.
According to the statement, the header inflation will increase to 3.7% at the end of 2025, while falling to 2.8% to the end of 2026.
These numbers are based on the expectations that the RBA reference rate indicator – or “cash rate”, which is in Australia – will drop to 3.6% to December 2025, and 3.5% to December 2026.
Australia S&P/ASX 200 The stock exchange rate dropped by 1.02% after the data is released, while the Australian dollar weakened to trade at 0.6250 compared to Greenback.
In the note published after the announcement of GDP My Bui, an economist from the Australian Financial Services companies, he said: “While the growth rate is still below the long -term trend, this means a turning point for the economy.”
He warned, however, that the growth rate was still fragile, indicating that government expenditure contributed to most growth, while consumer expenditure was raised by promotions.
“In addition, the sustainable growth development is still doubtful, because the performance has still not increased, while the rates are still at a restrictive level,” she wrote. “The tensions of the trade war also create an additional inheritance risk for the economy this year.”
She said that AMP expected RBA to take place in March before she lowered the rates in May.