Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that despite losing momentum in the global economy, Australia’s growth has outperformed expectations this year.
“GDP growth rose 3.4%year over year in 2Q, a high since 2012, and unemployment has fallen from around 5.5% to 5.0%.”
“The government budget position for the 2017/18 fiscal year came in $19.3bn better than initially projected, narrowing the deficit from an estimate of 1.6% of GDP to 0.6%; providing capacity for both major parties to promise more fiscal spending ahead of the election next year.”
“Vulnerabilities remain for the Australian economy, but there appears to be momentum supported by infrastructure investment at the state and federal level, which is forecast to remain at a high level over coming years. The big win by the Labor party in the Victorian state election was attributed in part to its spending on infrastructure projects and sends a message for the national election contenders.”
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