Westpac lowered the forecast of GDP for Australia in the third quarter to -0.2% and in annual terms to 2.1% (from 3.3% in the second quarter). Chief Economist Andrew Hanlan said that the 0.2% decrease in the third quarter due to net exports.
Domestic demand in the third quarter decreased by 0.4%, this is due to decreased activity of the construction of homes and business investment. The bank expects a small increase in private consumption of 0.5%, after rising 0.4% in the second quarter.
NAB and Morgan Stanley also predicted negative growth in the third quarter. The NAB said that Australia’s GDP in the first quarter 2017 is projected at -0.2%, but there is some risk that the GDP for the third quarter could be up to 0.5%.
JP Morgan forecast Australian GDP unchanged in the third quarter. ANZ forecast Australian GDP in the 3rd quarter at -0.1%. CBA forecast Australian GDP for the 3rd quarter at + 0.1%.
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