Australia Q2 GDP growth matches expectations

The Australian Bureau of Statistics (ABS) reported on Wednesday that Australia’s real gross domestic product (GDP) rose by 0.5 percent q-o-q (in seasonally adjusted terms) in the second quarter of 2019, matching economists’ forecast. In the first quarter, the GDP also recorded a 0.5 percent q-o-q expansion (revised from originally reported increase of 0.4 percent q-o-q).

According to the ABS, the external sector drove GDP growth this quarter, while the growth in the domestic economy remains steady. Net exports contributed 0.6 percentage points to GDP growth in the second quarter, due to strong exports of mining commodities. At the same time, government spending was the main contributor to growth in domestic final demand, while the household sector remained relatively subdued, with a 0.4 percent increase in household expenditure. Dwelling investment declined by 4.4 percent during the quarter.

In y-o-y terms, the GDP grew 1.4 percent after a revised 1.7 percent y-o-y surge in the prior quarter (originally reported advance of 1.8 percent y-o-y). Economists had forecast a 1.4 percent y-o-y rise in the last quarter. That was the weakest annual expansion rate since the Global Financial Crisis.