Home Australia: The worst annual contraction in history – Standard Chartered
FXStreet News

Australia: The worst annual contraction in history – Standard Chartered

Economists at Standard Chartered Bank have lowered the Australian 2020 growth forecast to -5.1% y/y, the worst annual contraction in Australia’s history. AUD/USD is sitting at 0.6521. 

Key quotes

“We lower our 2020 growth forecast for Australia to -5.1% y/y (-0.8% y/y previously). This would be the worst contraction since at least 1960 when the current GDP series was first published.” 

“We expect GDP to contract over 12% y/y in Q2. We also lower our 2020 inflation forecast to 0.7% y/y (from 1.8% y/y) to account for slower activity and lower global crude oil prices.” 

“Government spending aimed at enabling businesses to retain workers should prevent a rapid rise in unemployment; nevertheless, we expect the unemployment rate to peak at c.11%.”

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.