Australia cuts GDP growth outlook on inflation, higher rates – Bloomberg

“Australia downgraded its economic growth outlook by a half-percentage point for this fiscal year and next due to accelerating inflation, higher interest rates and a slowing global economy,” reported Bloomberg early Thursday morning in Asia.

The news quotes excerpts of an economic statement to be delivered to parliament Thursday by Aussie Treasurer Jim Chalmers while mentioning, “The economy expanded 3.75% in the 12 months ended June 30, compared with the previous government’s estimate of 4.25% ahead of a May election.”

“The economy is forecast to decelerate further this fiscal year to 3% from a prior expectation of 3.5% and then 2% in fiscal 2024 from 2.5% seen before,” adds Bloomberg.

Additional quotes

The Australian economy is growing -- but so are the challenges. Some are home-grown, others come from around the world.

The headwinds our economy is facing -- higher inflation at the top of that list, along with slowing global growth -- are now reflected in the revised economic outcomes and forecasts.

AUD/USD grinds higher

The news fails to impress the AUD/USD buyers as the quote seesaws around a six-week high near 0.7000 of late. In doing so, the Aussie pair holds onto the post-Fed gains while waiting for Australia’s Retail Sales for June and the US preliminary Q2 GDP.