Australian economic growth remains fixed at 1.3 % in the first quarter

The Australian Statistics Office said in a statement Wednesday, with growth stopped amid large global trade tensions.

The economy has grown by 1.3 % yearly in the first quarter, less than 1.5 % less growth in a Reuters poll. It has not changed from Growth 1.3 % on an annual basis In the previous quarter.

On a quarter of a quarter, the economy expanded 0.2 %, as it was composed of 0.4 % growth expectations.

Catherine Kennan, the head of the National Accounts ABS, has attributed the soft growth to reducing public spending and poor demand for consumers and exports.

“Public spending recorded the greatest criticism of growth since the quarter of September 2017,” Keenan said. “The harsh weather events reduced the local final demand and exports. The effects of the weather were particularly clear in mining, tourism and shipping,” Keenan said.

the Official collapse data The largest withdrawals on the activity from the general demand and net trade showed, as each point puts 0.1 percentage points from the semester GDP, while the resulting special demand has strengthened by 0.3 percentage points.

Australian Reserve Bank Prices decreased to 3.85 %, and their lowest level in two yearsIn its last meeting in May, with the decline in inflation fears, providing some fields to enhance growth growth and growing global trade risks.

Apheigit Syria, chief economist at Capital Economics, said in a note that the issuance of GDP in the first quarter may enhance the RBA issue to reduce monetary policy more.

However, Syria warned that the upheaval risks to inflation are still exist, as the costs of employment continued to grow at a faster rate than the RBA inflation goal, while maintaining that the central bank will only reduce prices to 3.35 % in the current mitigation cycle.

The Australian inflation of the consumer declined to its lowest level for four years 2.4 % in the first quarter From 2025, within the target RBA range from 2 % to 3 %. In April alone, monthly inflation was also 2.4 % compared to the previous year.

The central bank said last month it expected GDP growth to capture in 2025Patured by refreshing consumption and continuous strength in public demand, while the “somewhat weakening” demand for its exports can be burdened with growth.

Minutes The May 20 meeting showed The Central Bank Council looked at lowering prices through 50 basis points, pointing to a “much higher highest” tariff by the Trump administration and the unpredictable tariff decisions “to move forward.

Some members of the Board of Directors discussed that a major reduction could provide “greater insurance” against high global trade risk. The central bank ultimately moved with the most predictable track a 25 basis cut a point Last month, he left the door open for more price cuts.

Ben Audi, the main economist in Oxford, believes that the additional economic weaknesses that extend to the second quarter may push the central bank to reduce prices again in July, closer to his current expectations.

“I withdraw from the uncertainty on the gross domestic product only for the report,” Audi said in a memo.

The S&P/ASX 200 normative index increased by 0.83 % after the GDP release, while the Australian dollar remained steadfast, as another is being traded at 0.6460 against the dollar.