Country Economic Forecasts > Australia

Economy slows in Q4 but outlook appears brighter, GDP growth now seen at 2.7% this year and 2.6% in 2019

Momentum in Australia’s economy slowed in Q4 2017, with GDP growth falling back to 0.4% q/q – this took full-year growth in 2017 to 2.3%. Consumer spending was surprisingly robust, and government spending continues to be supportive. Net exports and private sector investment were a drag, partly a result of one-off factors. Looking forward, we are now more optimistic about the outlook for non-mining business investment, and we expect a shallower decline in residential construction. A slower pace of consumer spending growth in 2018 will put a slight drag on GDP growth. Overall, we now see the economy growing by 2.7% this year (up from 2.4% previously).

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