The ABS has released its Q1 national accounts, with GDP rising 0.8% over the quarter – beating analyst’s expectations of a 0.7% rise.
Annual GDP growth slowed to 3.3%, down from 4.6% over the prior quarter.
Below are the key changes across components:
Domestic final demand (mostly household consumption) drove the growth in GDP in Q1, with net trade detracting from growth:
Domestic final demand contributed 1.6 percentage points to GDP growth. Household final consumption expenditure contributed 0.8 percentage points. Government consumption contributed 0.6 percentage points, driven by increased health expenditure. The government’s response to the floods in NSW and QLD also contributed to the rise.
Net trade detracted 1.7 percentage points, driven by the strongest rise in imports since December quarter 2009. The increase in imports reflected the arrival of delayed shipments and inventory rebuilding by businesses closer to pre-pandemic levels. Changes in inventories contributed 1.0 percentage point and partly offset the detraction from imports.
I’ll be back later with my usual detailed report.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also Chief Economist and co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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