The Harbor Bridge, Opera House and ferries are photographed on Sydney Harbor at sunrise during the COVID-19 pandemic on April 20, 2020 in Sydney, Australia.
James D. Morgan | James D. MorganGetty Images News | Getty Images
Australia’s economic growth was lower than expected in the third quarter, with rising borrowing costs and inflation continuing to drag down the economic slowdown.
Data showed real gross domestic product grew 0.3% in the three months to September, compared with 0.2% growth in the previous quarter. The Australian Bureau of Statistics said on Wednesday. It was also lower than the 0.4% growth forecast by Reuters.
On an annualized basis, Australia’s economy grew by 0.8%, which was also lower than Reuters’ forecast of 1.1% growth. Growth of 1% over the past 12 months One quarter.
“We expect GDP growth to pick up slowly in the coming quarters,” Sean Langcake, head of macroeconomic forecasts at Oxford Economics, said in a note.
Longcake added that while improvements in consumption would be beneficial, any recovery would likely be “unspectacular” and expected the economy to “below trend growth in the short term.”
In the past two years, the Australian economy has been showing a slowdown, and the Reserve Bank of Australia has begun to implement tightening policies and raised interest rates. Up to 425 basis points From May 2022.
Australia’s central bank keeps benchmark interest rate at Hitting a 13-year high of 4.35% Since the end of last year.
National consumer price increase in the third quarter Slowed sharply to 2.8%largely thanks to government energy bill rebates.
Core inflation (excluding electricity and motor fuel prices) remains elevated despite More than two-year low of 3.5%still higher than the central bank’s target range of 2% to 3%.
Governor of the Federal Reserve Bank of Australia Michelle Bullock said last week Core inflation is “too high” and it is not appropriate to consider cutting interest rates in the short term.
She reiterated that monetary policy will remain restrictive until the central bank is “confident” that underlying inflation is on track to approach the midpoint of its target range of 2.5%.
The Reserve Bank of Australia’s next policy meeting is scheduled for December 10, where officials are widely expected to Keep cash rate unchanged.
The latest forecast from the central bank, Published last month, “Adjusted average inflation,” or core inflation, is expected to gradually slow to 2.5% by the end of 2026.
