[Sydney 4th Reuters]-The Australian Federal Statistical Office announced on the 4th, the second quarter real GDP (GDP) increased by 1.4% year-on-year, the lowest growth in about 10 years. Consumption was soft and highlighted the need for economic support through monetary and fiscal policy.
The year-on-year rate of increase was in line with the low level recorded during the global financial crisis, well below the 2.75% “keynote”.
Nomura economist Andrew Tishurst said, “We expect the year-on-year growth to be bottoming out, but the headwinds of modest consumption, the decline in housing construction, and the more difficult external environment are expected to continue. The central bank will still have the potential for mitigation. "
The central bank demands government spending, but Prime Minister Morrison acknowledged that the economy is “soft” prior to the announcement of the GDP statistics, but expressed the view that fiscal surplus was more important than economic leverage. .
Second-quarter GDP increased 0.5% YoY, consistent with market expectations. It was the only bright material because it was viewed as below expectations, and the Australian dollar <AUD = D3> rose slightly to $ 0.6778.
<Domestic consumption is not a driving force>
The positive growth in the second quarter was largely due to the contribution of government spending and exports. Domestic consumption was under pressure from sluggish wage growth, and housing construction fell significantly.
The contribution to GDP growth compared to the previous year is 1.3% for public spending and 1.2% for net exports. On the other hand, household spending was only 0.8 percentage points, and housing construction was minus 0.5 percentage points.
