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Wednesday, June 26, 2024

Australia’s GDP grows marginally representing a 1.5% increase over the year

The Australian Bureau of Statistics (ABS) reported a modest 0.2% economic growth in the December quarter of 2023. This growth represents a 1.5% increase over the year, indicating stable but gradual economic expansion.

Government final consumption expenditure rose by 0.6%, contributing to the quarterly growth. This increase followed a more substantial 1.5% rise in the previous September quarter.

Net trade made a positive contribution to GDP growth, adding 0.6 percentage points. Imports saw a notable 3.4% decline, particularly in goods like consumption and intermediate goods. Conversely, exports decreased by 0.3%, primarily due to a 0.4% reduction in goods exports.

A $2.7 billion decrease in inventories negatively impacted GDP growth, detracting 0.3 percentage points. The decline was linked to the fall in goods imports, affecting wholesale and retail inventory levels as businesses chose not to restock during the period.

The Australian economy’s slight growth in the December quarter of 2023 was influenced by various factors. The increase in government expenditure, positive net trade contributions, and the dip in inventories collectively shaped the economic landscape during this period. Understanding these dynamics is crucial for assessing the overall performance and trends in the Australian economy.

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