12 Aug 2015
Australia: Economic outlook mixed and patchy - NAB
FXStreet (Bali) - The economic outlook in Australia remains mixed and patchy, notes Alan Oster, Group Chief Economist at NAB.
Key Quotes
"Mining investment is declining sharply, public spending is limited and national income growth is weak amidst declining commodity prices."
"Meanwhile, monetary policy is highly stimulatory and the AUD is acting as a shock absorber, with tentative evidence of recovery in non-mining activity."
"Our GDP forecasts are marginally stronger than last month – 2.4% in 2014/15, 2.8% in 2015/16 and 3.2% in 2016/17 – with domestic demand weak and net exports making a large contribution."
"The unemployment rate is forecast to stay around 6¼% before easing slightly into 2016/17."
"Central forecast is for the RBA to hold rates steady, with the next move likely to be up, but not till late 2016."
Key Quotes
"Mining investment is declining sharply, public spending is limited and national income growth is weak amidst declining commodity prices."
"Meanwhile, monetary policy is highly stimulatory and the AUD is acting as a shock absorber, with tentative evidence of recovery in non-mining activity."
"Our GDP forecasts are marginally stronger than last month – 2.4% in 2014/15, 2.8% in 2015/16 and 3.2% in 2016/17 – with domestic demand weak and net exports making a large contribution."
"The unemployment rate is forecast to stay around 6¼% before easing slightly into 2016/17."
"Central forecast is for the RBA to hold rates steady, with the next move likely to be up, but not till late 2016."