Australia’s economic growth misses estimates, rising 2.1% in the third quarter
The Sydney Opera House, designed by Danish architect Mr Jorn Oberg Utzon, at first light as the sun rises over Sydney harbor and city center skyscrapers.
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Australia’s economic growth in the third quarter missed analysts’ expectations but was still the fastest in nearly two years.
The country’s GDP rose 2.1% from the same period a year ago – the strongest reading since the third quarter of 2023, when the economy grew at the same rate – data from the Australian Bureau of Statistics showed on Wednesday, missing economists’ forecast for growth of 2.2%.
On a quarterly basis, Australia’s GDP rose 0.4% compared to the 0.7% forecast in a Reuters poll.
The economic growth reading follows remarks by Reserve Bank of Australia governor Michele Bullock earlier in the day that the economy had likely reached its potential growth limit.
At its monetary policy meeting last month, the Central Bank said, Interest rate remained unchanged at 3.6%He said given the strengthening economy, tight labor market and persistent inflationary pressure, there is caution about further easing.
Bullock said last month that the current situation is as follows: Interest rate cut cycle may endThe central bank predicts that inflation will remain above the target range of 2% to 3% until the second half of next year.
The RBA’s board meets next week and is expected to leave interest rates at 3.6%.
The country’s inflation accelerated in October, increasing by 3.8% on an annual basis, the fastest increase in seven months.
In the second quarter of this year, the Australian economy grew at an annual rate of 1.8% compared to 1.3% in the previous quarter, supported by domestic spending, including household and government consumption.
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