9/2/2021, 12:08 PM (Source: TeleTrader)
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Australia avoids double-dip recession in Q2 - UOB

Australia has recorded a 0.7% quarter-on-quarter increase in the second trimester of 2021, avoiding a double-dip recession. This figure exceeded expectations of 0.4%, although it was lower than last quarter's revised figure of 1.9%. In yearly terms, a figure of 9.6% was recorded (also exceeding the estimated 9.1%) - a significant turnaround from the previous quarter's annual 1.3% figure.

UOB Group economist Lee Sue Ann noted on Thursday that "extended lockdowns in Sydney and Melbourne are likely to continue impacting Australia's economic recovery in the near-term." Sydney's ongoing lockdown (since 26 June) is expected to last until at least late September, which will have a detrimental impact on Q3 figures - likely resulting in a reversal of recent gains in the labor market.

However, there is optimism that ongoing fiscal and monetary support will "likely see a rapid rebound as restrictions are removed," with the economy expected to catch up over 2022 bringing the GDP level back to previous forecasts.

Baha Breaking News (BBN) / IB