Australia: GDP expected at around 3% mark for the remainder of 2016 and 2017 - NAB

Research Team at NAB, notes that the Australia’s real GDP growth picked up to 3.1% y/y in Q1 and is expected to remain at around the 3% mark for the remainder of 2016 and 2017 before easing back to 2½% in 2018.

Key Quotes

“While net exports are providing the largest contribution to growth in real terms, our estimates suggest non-mining activity is outperforming the aggregate economy. The unemployment rate is forecast to fall to around 5½% by late 2016 before ticking up to around 5¾% in 2018.

Meanwhile, the weaker terms of trade and low wages growth will continue to challenge national income and government revenue. Low inflation will remain a feature, but we are not persuaded at this stage that further monetary policy easing will be forthcoming.”