Growth forecasts cut back slightly
(6 September 2012 – Australia) Westpac cut back its growth forecasts as trade figures for the June quarter showed a slump with the deficit on goods and services decreasing by A$871 million.
Australia's current account deficit narrowed to A$11.801 billion in the June quarter, as rising export volumes helped offset lower commodity prices.
The result was in line with analysts' forecasts and smaller than the revised A$13 billion shortfall for the March quarter.
'We've downgraded our forecast for second-quarter GDP growth to 0.6 percent from 0.8 percent,' said Westpac senior economist Matthew Hassan.
'However, we still expect annual growth to be 3.5 percent.'
'We're now less inclined to expect a downward revision to the first-quarter GDP growth, which originally printed at 1.3 percent,' said Hassan.
The result was in line with analysts' forecasts and smaller than the revised A$13 billion shortfall for the March quarter.
'We've downgraded our forecast for second-quarter GDP growth to 0.6 percent from 0.8 percent,' said Westpac senior economist Matthew Hassan.
'However, we still expect annual growth to be 3.5 percent.'
'We're now less inclined to expect a downward revision to the first-quarter GDP growth, which originally printed at 1.3 percent,' said Hassan.
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