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yesterday

Forecasters Cut Australia’s Q2 Growth Outlook as Private Sector Overtakes Public Spending

Forecasters trimmed June‑quarter GDP estimates following partial data showing a fall in public demand.

Workers walk on the streets of Sydney, Australia, September 4, 2017. REUTERS/Steven Saphore/File Photo
Numbers are displayed on a board at the Australian Securities Exchange (ASX) headquarters in Sydney, Australia, August 19, 2025. REUTERS/Hollie Adams/File Photo
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Overview

  • Treasurer Jim Chalmers said the private sector is expected to be the primary driver of growth ahead of Wednesday’s ABS national accounts.
  • Partial figures showed public demand fell 0.4% in the quarter while net exports added only 0.1 percentage point.
  • RBC lowered its quarterly GDP estimate to 0.5% from 0.7%, with annual growth projections clustered around 1.5%–1.6% from RBC, ANZ, JP Morgan and Nomura.
  • Westpac warned underlying momentum remains weak and said a shift toward more capital‑intensive private activity could pressure employment.
  • Nomura said sub‑trend growth and modest wage gains could increase expectations for further Reserve Bank of Australia rate cuts.