Live Chat

Australia GDP growth grinds to a halt in Q1 2024

Australia GDP growth slows to 0.1% quarter-on-quarter in Q1 2024

Australia's economic growth slowed significantly in the March quarter, hindered by high borrowing costs and persistent inflation, which dampened consumer spending. Despite this, relief from interest rate pressures appears distant.

The Australian Bureau of Statistics reported on Wednesday that the country's real gross domestic product (GDP) increased by just 0.1% in the first quarter, slightly below market expectations of 0.2%.

Annual growth dropped to 1.1%, down from 1.5% in the previous quarter, marking the slowest pace for the Australia GDP in three decades outside the pandemic.

Household spending, which constitutes half of the Australia GDP, grew only modestly at 1.3%, primarily driven by essential expenditures like electricity and healthcare, while discretionary spending remained nearly stagnant.

Future spending potential looks bleak as the savings rate fell to a historic low of 0.9%, after large downward revisions to past numbers.

Marcel Thieliant, head of Asia-Pacific economics at Capital Economics, commented on the Australia GDP dynamics to the Reuters news agency:

"Given that the savings rate was around 5% before the pandemic, that underlines the severe pressure households have been facing due soaring living costs, interest payments and taxes. And with real incomes stagnating last quarter, that pressure hasn't fully faded yet”.

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Naspers
Bristol Myers
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

Markets rule out changes in RBA interest rates this year

Financial markets have ruled out the likelihood of another increase in the Reserve Bank of Australia's (RBA) 4.35% cash rate. However, they also see little chance of a cut in the near future. Futures indicate a 50-50 chance of a move in December, with a full cut to 4.10% not anticipated until May next year.

RBA Governor Michele Bullock, addressing lawmakers before the data release, acknowledged that the Australian economy was “very, very weak”, but insisted on the need for restrictive policies to balance demand and supply and curb inflation.

Australia’s April consumer price inflation (CPI) report showed a surprising rise to 3.6%, driven by widespread cost increases across food, health, clothing, and travel. The GDP report's inflation measures also remained high, with inflation in domestic demand running at 4.6% for the year.

Australia GDP growth at 0.1% quarter-on-quarter in Q1

Real per capita Australia GDP falls 0.4% in Q1

While inflation boosted nominal GDP, which grew by 3.5% to A$2.6 trillion ($1.73 trillion), equivalent to A$98,224 per capita, real GDP per capita fell by 0.4% for the quarter and 1.3% over the year.

This per capita "recession" highlights the impact of robust migration, which pushed annual population growth to 2.5% — double the three-decade average.

The surge in overseas workers and students has strained the housing market, driving rents to record highs and prompting the Labor government to consider capping future immigration.

The Australian dollar traded lower after the GDP data became public, with AUD dropping by close to 0.2% against USD to trade at $0.6638 as of 14:30 GMT on June 5. The Aussie, as it is widely referred to in forex markets, has shed close to 2.6% of its value against the U.S. dollar so far this year.


When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Oil price jumps after Biden's comments on possible Israeli strikes on Iran

Friday, 4 October 2024

Indices

Oil price surges after Joe Biden’s comments on possible Israeli plans to attack Iran

US dollar sees continued safe haven flows on Middle East conflict concerns

Thursday, 3 October 2024

Indices

US dollar sees continued safe haven bid on Middle East concerns

 Oil prices gain amid muted market impact of Iran’s strike on Israel

Wednesday, 2 October 2024

Indices

Stocks steady, oil prices up on muted market reaction to Iran strike

Nikkei index tumbles by close to 5% on Ichiba win

Monday, 30 September 2024

Indices

Japan’s Nikkei index skids on Ichiba win, China stocks surge

Live Chat