Australia’s economy appears to be slowing and some economists argue that a more subdued outlook could lead to further monetary easing from the country’s central bank.
Australia is due to report first quarter economic growth on Wednesday. While economists polled by Reuters expect robust growth of 3.2 percent on-year, up from 2.8 percent in the previous quarter, and 0.9 percent on-quarter, a marginal increase on 0.8 percent last quarter, analysts say the economy will take a turn for the worse in the second quarter.
“I think the second quarter is where we’ll see a huge disturbance as there’s been a huge change or shift back in [Australia] that will certainly affect that number,” said Evan Lucas, market strategist at IG.
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