Responses to the Australian Q2 GDP are coming in,, this via Westpac (in very brief):
- Annual growth … a sharp loss of momentum
- the slowest pace since the GFC, September 2009
These are challenging times
- cyclical weakness, centred on construction
- powerful structural headwinds from weak wages growth and productivity, constraining consumer spending
- global economy is slowing and downside risks have intensified
Looking ahead
- recent policy stimulus (tax cuts and interest rate cuts) will provide a boost to activity - but given the weak starting point and the powerful headwinds - the risk is that growth remains below trend over the remainder of 2019 and through 2020.
There is plenty more of course (its a detailed note), but you get the idea.
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For AUD, though, how dirty is the shirt? There are plenty worse.
