Australian Q1 2024 GDP +0.1% q/q (expected +0.2%)

Economic growth in Australia in the first quarter of 2024.

+0.1% q/q

• expected 0.2%, prior 0.2%

+1.1% y/y

• expected 1.2%, prior 1.5%

The ‘Chain price index’ is an inflation indication, it rose 0.8% y/y.

Australian Bureau of Statistics comment:

• GDP growth was weak in March
• economy experiencing its lowest through the year growth since December 2020
• GDP per capita fell for the fifth consecutive quarter, down 0.4%

Note that 2020 was a pandemic year. Apart from that the +1.1% y/y is the slowest since the 1990s. This is awful data, but you don’t need me to tell you that. The RBA is holding its cash rate high in an effort to drive inflation to its 2-3% target band. The RBA has an agreement with the Australian Treasurer Chalmers to get it to 2.5%, not just 3%.

AUD/USD barely changed:

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Earlier from Australia:

• Reserve Bank of Australia Governor Bullock says she expects Q1 GDP growth to be low
• More from RBA’s Bullock – If inflation proves sticky, won’t hesitate to hike rates
• Australian May Services PMI (final) 52.5 (prior 53.1)

This article was written by Eamonn Sheridan at www.forexlive.com.