Money Australia economy to pick up speed after slow first-quarter - RBA

12:21  19 june  2017
12:21  19 june  2017 Source:   Reuters

Australia's economy is being cushioned by a big increase in government spending

  Australia's economy is being cushioned by a big increase in government spending Government spending in Australia has increased significantly in recent years, and looks likely to keep climbing. A research note from ANZ highlights that public sector spending accounts for more 23% of Australia's GDP. Government spending in Australia has increased significantly in recent years, and looks likely to keep climbing.

CANBERRA, June 19 (Reuters) - Australia 's economy should pick up speed after a sluggish start Appearing at a leadership conference, Reserve Bank of Australia ( RBA ) Governor Philip Lowe 0.3 percent in the first quarter of the year, while annual growth was the slowest since 2009 at 1.7 percent.

The economy should pick up speed after a sluggish start to the year, Reserve Bank governor Philip Lowe said on Monday, while also pointing to several RBA keeps record 1 .5% rate steady. "It is likely that growth over the next couple of years will be a bit stronger than it has been recently," he said.

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Graph 6. 1 . Australia ’s Trading Partner Growth*. Year-average % RBA forecast %. Consumption growth is still expected to pick up over the forecast period. The measures of underlying inflation were around 0.7 per cent in the December quarter , after an unusually low reading in the previous quarter .

Australia's economy should pick up speed after a sluggish start to the year, a top central banker said on Monday, while also pointing to several headwinds for the Pacific nation.

Appearing at a leadership conference, Reserve Bank of Australia (RBA) Governor Philip Lowe cited a recovery in the global economy, upbeat surveys of local business sentiment and strength in employment as reasons for optimism.

"It is likely that growth over the next couple of years will be a bit stronger than it has been recently," he said.

"The pick-up in the global economy is helping us. The return of mining investment to more normal levels is almost complete," he added. "Employment growth has also strengthened over recent months. These are all positive developments."

RBA minutes to shed light on economy

  RBA minutes to shed light on economy The RBA minutes of the June board meeting will be released on Tuesday, as the central bank governor revealed he was closely watching low wages growth.The latest economic growth figures were released a day after the June board meeting, and defied expectations of a negative result.

After 8 years of providing fast data and the most relevant news for traders, World Business Press will be entering a period of hiatus while investor options are explored. We hope to leave info, charts and statistics up for as long as possible – however should they become an issue they will be removed.

Australia economy to pick up speed after slow Q 1 : RBA 8:17 AM. Britain and EU launch Brexit talks in Brussels 7:15 AM. Oil prices fall on further rise in US drilling, signs of slowing demand. 9:07 am.

The economy expanded by a disappointing 0.3 percent in the first quarter of the year, while annual growth was the slowest since 2009 at 1.7 percent.

The RBA's optimism on the outlook is a major reason it has resisted pressure for another cut in interest rates, which are already at record lows of 1.5 percent.

Lowe conceded there were hurdles ahead including slow wage growth, high levels of household debt and rising home prices in some of the major cities.

"As things currently stand, it looks likely that average growth in per capita incomes over the next quarter of a century will be lower than over the past quarter of a century," said Lowe.

Economic reform was needed to enhance living standards, though Lowe said there seemed to be a shortage of good ideas that could get through Australia's deadlocked political process.

Shoppers stand in front of a sales sign with their purchased items outside a retail store in central Sydney, Australia © REUTERS/Steven Saphore Shoppers stand in front of a sales sign with their purchased items outside a retail store in central Sydney, Australia

Here comes the slowdown in the Australian economy Bill Evans has been warning about .
For several months Westpac's chief economist Bill Evans has been warning that the prospects for the Australian economy next year are looking "discouraging", and now Westpac's Leading Index -- a forward-looking indicator on how the economy is likely to perform in the future -- appears to be backing up that view. The six-month annualised growth rate in the index, a guide as to the likely pace of economic activity looking three to nine months into the future compared to historic norms, fell heavily in May, sliding to 0.62% from 1.01% in April.

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