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Goldman Cuts Australia GDP Forecasts, Sees RBA Sticking to Taper

A pedestrian crosses a street in downtown Melbourne

A pedestrian crosses a street in downtown Melbourne

Photographer: Con Chronis/AFP/Getty Images

Australia’s lockdowns are likely to trigger a deep economic contraction this quarter, while a slower lifting of restrictions due to the highly-contagious delta variant will weigh on the rebound, Goldman Sachs Group Inc. says.

Gross domestic product is likely to fall 2% in the third quarter from the previous period, driven by weaker household consumption and construction activity, Goldman economists led by Andrew Boak said in a research note Monday. The economy is then expected to expand 1.8% in the fourth quarter as restrictions are relaxed more gradually than in the past.