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Australia’s GDP grew by 3.6% in Q2 as consumers spend more and energy exports do well

The Australian Bureau of Statistics (ABS) reported that Australia’s gross domestic product (GDP) grew by 3.6% year-on-year in the second quarter of 2019. This was stronger than the growth of 3.3% in the first quarter.

Compared with the previous quarter, GDP grew by 0.9% in the second quarter, which was below the market estimate of 1.0% but still stronger than in the first quarter, which grew by 0.8%.

The Australian economy is supported by consumer spending and strong energy exports, suggesting that the Australian economy will be able to withstand pressure from rising interest rates and the rising cost of living.

The Reserve Bank of Australia (RBA) raised its key interest rate by 0.50% to 2.35% at its meeting yesterday.

Yesterday’s prime rate increase is expected to prompt Australian banks to raise their lending rates. This would allow people to pay around $200 per month in mortgage interest on a $700,000 loan.

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