SYDNEY, AUSTRALIA – MAY 30: The Sydney Harbor Bridge and skyline illuminate during Vivid Sydney 2024 on May 30, 2024 in Sydney, Australia. Brendon Thorne | Getty Images News | Getty Images Australia’s economic growth exceeded expectations in the second quarter, expanding 2.1% year-on-year, data released on Wednesday showed. Economists polled by Reuters had estimated growth of 1.8%, while the economy had expanded 2.5% in the previous quarter. On a quarter-on-quarter basis, GDP rose 0.4%, also marginally exceeding expectations of 0.3%. The slight growth was driven by private demand and mining exports. The Australian Bureau of Statistics said in its statement that households continued to behave cautiously, and spending remained subdued, increasing just 0.4%. Households reduced fuel consumption due to high prices due to the Middle East conflict, and reduced domestic and international travel. The higher-than-expected GDP figure will allow the Reserve Bank of Australia room to press ahead with policy adjustments as it seeks to curb inflation. At their last meeting, some RBA board members had considered the case for further tightening, saying inflation in the country was still too high. Australia’s July inflation reading beat expectations, coming in at 3.5% versus the expected 3.3%. The RBA forecast inflation would decline only gradually, returning to roughly the midpoint of its 2%-3% target range by the end of 2027. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
