Australian Growth Beats Estimates as Rebalancing Begins: Economy – Bloomberg 03-04-14

Salient to Investors:

Australia’s Q4 GDP exceeded the median economist estimate.

Paul Bloxham at HSBC said the rebalancing act is under way, and a great comfort for the RBA – rate cuts are off the table and interest rates may have to rise before year-end.

Katrina Ell at Moody’s Analytics said the Australian economy has not fallen in a heap since mining investment peaked and sees further gains as the monetary stimulus continues to filter through.

Glenn Stevens at RBA said some business and confidence indicators have improved, exports are rising, but resources sector investment spending is set to decline significantly and signs of improvement in investment intentions in other sectors are only tentative.

Read the full article at http://www.bloomberg.com/news/2014-03-05/australia-s-economy-expanded-faster-than-forecast-last-quarter.html

Click here to receive free and immediate email alerts of the latest forecasts.