Australia's economy grows faster than expected, raising RBA interest rate rise risk
Australia's economy grew by 0.4% in the June quarter, exceeding expectations and fueling speculation of an upcoming interest rate hike. While the government touts the growth as a sign of strength, some economists warn that productivity remains low.
Why it matters
Economic growth data directly influences central bank policy, impacting borrowing costs for Australian citizens and businesses.
Economists and policymakers are closely watching how consumers are responding to rising interest rates. ( ABC Melbourne: Kristian Silva )
The economy grew 2.1 per cent over the year to June 30, according to the latest data. Treasurer Jim Chalmers says it's proof the Australian economy is as strong or stronger than every other major advanced economy.
Link copied Share Share article Australia's economy grew 0.4 per cent in the June quarter, slightly beating most economist forecasts and further raising the prospect of an interest rate hike as soon as this month.
The economy grew 2.1 per cent over the past year to June 30, seasonally adjusted, according to the latest Australian Bureau of Statistics National Accounts.
Both numbers were slightly ahead of economist forecasts, which had centred on a quarterly rise of 0.3 per cent and annual economic growth of 1.8 per cent.
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