Economics
The Great Aussie Recession-Free Run Is Looking Shaky Once Again
- Some economists see risk of contraction in first quarter
- Disruption from cyclone likely to have negative impact in 2Q
Why We May See the End of Australia's Recession-Free Run
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Weak signals from Australia are forcing economists to revisit their first-quarter growth forecasts. Some are even suggesting a contraction.
Home building, net exports and household consumption could be a drag on gross domestic product for the first three months of 2017, according to some estimates. A negative print would raise the specter of recession, especially as a cyclone that ripped through Queensland’s key coal mining region is tipped to subtract from growth in the three months through June.