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- Australia: Economy forecast to contract 3.0% in 2020 - UOB
Australia: Economy forecast to contract 3.0% in 2020 - UOB
FXStreet reports that economist at UOB Group Lee Sue Ann assesses the latest GDP figures in the Australian economy.
“The Australia economy rose 3.3% q/q in the third quarter, as COVID-19 related restrictions eased across most states and territories. This follows the record 7.0% q/q decline in the second quarter. Whilst there was an improvement in 3Q20 GDP, the level of activity in the economy remained lower than prior to the pandemic, reflected in a 3.8% y/y decline.”
“In the details, domestic final demand contributed 4.3ppts to the q/q GDP growth. Household final consumption expenditure contributed 4.0ppts, as restrictions were lifted for households and businesses. Public demand contributed a further 0.3ppts.”
“Looking ahead, the end of Victoria's second lock-down and success in containing the virus domestically will likely support a further rebound in activity in 4Q20. We expect another sizeable increase in the December quarter (around 2.0% q/q, -3.8% y/y), which should take full-year 2020 GDP to -3.0%, before a moderate recovery in 2021 to 2.8%.”
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