Exports, spending cuts to hurt GDP growth
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AAP
2012-12-05
Weaker exports and government spending cuts are likely to have slowed the pace of economic growth in the September quarter.
The median market forecast is for the Australian economy to have grown by 0.6 per cent in the September quarter, according to an AAP survey of 13 economists last week.
The Australian Bureau of Statistics is expected to report on Wednesday that over the year to September, the economy is to have grown by 3.1 per cent.
This will be a considerable slowdown compared to the 3.7 per cent growth recorded in the 12 months to June.
TD Securities Asia-Pacific macro strategist Alvin Pontoh said weaker exports and spending cuts from state and federal governments were expected to weigh on economic growth.
"It's lower than the first half of the year but it is not a bad rate of growth," he said.
"In the first half of the year, you had strong consumption but that is partly because of a number of temporary factors, including retailers' discounting and carbon tax compensation, but those effects are going to fade."
