SYDNEY (Reuters) – Analysts have trimmed forecasts for Australian economic growth following some disappointing numbers last year, but still tip solid outcomes ahead even in the face of falling house prices and a slowdown in China.
Economists polled by Reuters forecast Australia’s A$1.87 trillion ($1.34 trillion) of annual gross domestic product (GDP) expanded by 3.0 percent in 2018, down from 3.2 percent in an October poll.
Downgrade - Outcome - Quarter - Year - Half
The downgrade reflects a surprisingly soft outcome in the third quarter of last year which soured what had been a strong first half. Data for the fourth quarter is not due until early March, though signs are that growth might be moderate at best.
The economy is then seen running around 2.7 percent through 2019 and 2020, further extending the country’s 26-year stretch without a recession.
Mark-down - Percent - Poll - Outcome - Headwinds
That was a slight mark-down from 2.8 percent in the previous poll, but would be a decent outcome given the headwinds gathering at home and abroad.
Falling house prices have combined with sluggish wage growth to crimp consumer spending and darken the outlook for home building, a sector that had been an engine of activity.
Sign - Damage - Australia - Commodity - Exports
Yet there has been little sign of damage to Australia’s commodity exports with strength in iron ore, coal and tourism helping deliver 11...
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