ASX: Dives 1.7% Amidst Economic Growth of 0.2% in June Quarter
ASX Performance and Economic Insights
The latest report shows Australia’s gross domestic product (GDP) grew 0.2% in the second quarter of 2024, which is down from the rising trend seen previously. This figure comes following a 0.1% percent increase in March, falling short of Reuters forecasts which expected a 0.3% percent rise.
Annual Growth and Economic Context
On an annual basis, the economy expanded 1%, marking the slowest pace since the early 1990s, excluding the pandemic's impact. Official forecasts had projected a growth of 1% percent, but results show that GDP per capita has now seen a decline for six consecutive quarters, down 0.4% percent in June.
- Reserve Bank Actions: The Reserve Bank of Australia aims to moderate economic growth to rein in inflation, having increased the cash rate to 4.35% percent since 2022.
- Key GDP Components: Recent GDP partials reveal mixed results: net exports were below expectations, yet government spending surged beyond forecasts.
Looking Ahead
The August employment report is anticipated for September 19, crucial for the Reserve Bank’s policy meeting scheduled for September 24, with expectations for rates to remain unchanged for the seventh consecutive time.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.