Overview
- Australia’s Q3 GDP rose 0.4% quarter on quarter and 2.1% year on year, with ABS citing a surge in machinery and equipment investment tied to data centres and a lift in household spending, while inventory drawdowns weighed on the headline.
- The OECD kept its global growth view at 3.2% for 2025 easing to 2.9% in 2026, saying AI investment and policy support offset some tariff damage, but warning that higher trade barriers and lofty AI-linked valuations pose risks.
- India logged 8.2% year-on-year growth in Q2 on strong private consumption and manufacturing, yet the OECD held its FY26 forecast at 6.7% and cautioned that higher U.S. tariffs will dent exports.
- South Africa’s economy expanded 0.5% in Q3 for a fourth straight quarterly gain, with nine of ten industries advancing, though economists say the pace remains too weak to materially cut unemployment.
- Policy signals remain cautious, with Australia’s central bank wary of further easing as domestic demand firms and with the OECD expecting inflation to return to target only gradually as tariff effects filter through.