Australia: Economy is back on track in 2017 - Westpac

The Australian economy is back on track in 2017, regaining momentum mid–year, following earlier weather disruptions, explains the analysis team at Westpac.

Key Quotes

“Recent partials have generally been positive and jobs growth was brisk over the first half of the year. Annual GDP growth is forecast to be a trend 2.8% in December 2017, slowing to 2.5% in December 2018 as the home building cycle turns down. The Reserve Bank left rates on hold for a 12th consecutive month in August and in their August Statement on Monetary Policy confirmed their expectation for above trend growth in 2018 and 2019, encouraging markets to price in a rate hike for next year. We continue to expect rates to remain on hold this year and next given our less upbeat view on growth for 2018."