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Greg Gibbs, Analyst at Amplifying Global FX Capital, suggests that despite losing momentum in the global economy, Australia’s growth has outperformed expectations this year.

Key Quotes

“GDP growth rose 3.4%year over year in 2Q, a high since 2012, and unemployment has fallen from around 5.5% to 5.0%.”

“The government budget position for the 2017/18 fiscal year came in $19.3bn better than initially projected, narrowing the deficit from an estimate of 1.6% of GDP to 0.6%; providing capacity for both major parties to promise more fiscal spending ahead of the election next year.”

“Vulnerabilities remain for the Australian economy, but there appears to be momentum supported by infrastructure investment at the state and federal level, which is forecast to remain at a high level over coming years.   The big win by the Labor party in the Victorian state election was attributed in part to its spending on infrastructure projects and sends a message for the national election contenders.”