Australian economic growth picked up in early 2018, increasing by 3.1% from a year earlier.
However, despite the sharp acceleration — far larger than most, including the RBA, expected — the detail of the report wasn’t as strong as the headline growth figure would suggest, particularly when it came to the household spending, the largest part of the Australian economy.
To help piece together the details of Australia’s GDP jigsaw puzzle, Paul and David are joined on this week’s Devils and Details podcast by Kristina Clifton, Senior Economist at the Commonwealth Bank.
In this episode, we not only discuss the GDP report but also the outlook for Australia’s jobs market, wage growth as well as the global economy based on recent PMI reports released for May.
We also look ahead to this week’s Australian employment report, including why the unemployment rate may not be the sole focus of attention for markets.
The discussion also touches upon continued volatility in emerging markets, including why it could become the norm rather than the exception in an era when major central banks are beginning to tighten monetary policy settings.