Recession avoided as GDP takes a surprise upswing, but next quarter looks bleak

As discussed by Dr Brendan Rynne, the September quarter economic activity is expected to decline in real terms by around -2.6 percent.

The Australian economy continues to surprise on the upside, with GDP growth in the June quarter recording 0.7 percent – marginally higher than both KPMG estimates and market expectations. A technical recession has been avoided, although the next quarter looks bleak, and the anticipated December quarter recovery is very dependent on the speed of lockdowns ending. Household consumption (+$3.0 billion) and government spending ($1.3 billion) were the heroes of the June quarter, with these two c...

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Authors: Brendan Rynne

Published Date: 02 September 2021