I'll gather more analyst responses to the Australian GDP data
But, this one caught my eye immediately. From Dr. Shane Oliver, Head of Investment Strategy & Chief Economist at AMP Capital:
- Not the feared negative but still very weak
- Nominal GDP just +1.6% y/y as terms of trade fell another 3.4% q/q (-10.6% y/y) = ongoing national income recession
- 0.2% growth is well below potential (at around 2.75%)
- Means rising spare capacity
- Expect the RBA to ease again & $A to fall into low $US0.60s
- Household savings rate still high at 8.8%, providing a decent buffer for growth in consumer spending
