As it was shown by third quarter results, Gross domestic product increased by 0.6%, slightly below the estimated 0.7%. For comparison, registered GDP growth for the second quarter was 0.9%. Meanwhile, the country’s economy demonstrated expansion by 5.9% since the previous year, while it was initially estimated to be around 6.3%.
Latest economic data reflects a recent period of rate hiking by the Reserve Bank of Australia. A series of half-percentage point rate hikes was delivered by the central financial institution to hold back rapidly increasing prices. The country’s GDP was supported by consumption during those months, as the Australians managed to save up more than 200 billion Australian dollars, or $135 billion, during the pandemic period.
Most observers still forecast further economic expansion in Australia, though noting that a certain slowdown of growth would still take place. Such a sentiment differs significantly from growing concerns of recession to come to the U.S. and other large economies of the world.
As it was said by senior economist at Westpac Banking Corp. Andrew Hanlan, a sharp slowdown is suggested to happen next year due to high inflation levels and increasing interest rates.
At the same time, according to an opinion stated by RBA Governor Philip Lowe, the country might be able to avoid recession even despite the sharpest monetary tightening since 1989.