(Reuters poll) Australian GDP is expected to grow just 0.1% in Q3, slashed from 0.9%

Author: Eamonn Sheridan | Category: News

July to September economic growth is expected at +0.1% q/q (+0.9% was the forecast in the April poll)

Reuters add:
  • range for the forecasts was -0.6% up +0.8%
  • "Sydney's lockdown could see Q3 GDP growth turn negative if the lockdown goes for six to eight weeks," said Tapas Strickland, an economist at National Australia Bank. "A worst-case protracted lockdown...means a possible hit of $4.2-5.6 billion on GDP. Such a hit is probably enough to see Q3 GDP growth dip temporarily into negative, with the drag approaching 1 percentage point off activity and producing a Q3 GDP print of -0.1% to -0.2%." 
  • When asked what was the biggest risk to the economy this year, 10 of 14 economists said a slow vaccination rate. The remaining four flagged a spread of new COVID-19 variants. 
I've been posting in recent days on the downgrades in expectations for Q3 growth due to rolling and extended lockdown for much of the country (currently 50% of Australia's population is back in lockdown) and the likely implications for RBA policy:

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