Australia’s GDP likely to expand by 2.4% in 2015/16 – NAB

By FXStreet FXStreet (Delhi) – Research Team at NAB, forecasts that Australian economy is likely to expand as depicted by real GDP to 2.4% in 2015/16 and 3.1% in 2016/17.

Key Quotes

“The ongoing high level of business conditions and trend improvement in key leading indicators such as capacity utilisation supports our view that the gradual recovery in the non-mining economy is becoming more resilient.”

“Low interest rates and the lower AUD are providing support, with strength particularly evident across services sectors of the economy, including but not limited to tourism-related activity.”

“The unemployment rate remains elevated for an extended period, but does ease to 6% by end 2015/16 and to 5¾ by end 2016/17, given the structural shift back towards more labour-intensive sectors. There remain clear downside risks from offshore, and weak commodity prices and falling mining investment will remain a drag. However, we find it difficult to mount a case for further policy easing on purely domestic grounds and view market pricing for another 25bp cut over the coming 6 months as overly pessimistic.”
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Source:: FX Street