Australia economy to slow on weaker home prices, consumption - Reuters poll

According to the latest Reuters poll of economists, the Australian economic growth is expected to slow down further following a deeply disappointing end to last year amid weakness in the housing sector and consumption.

Key Findings:

“Economists polled by Reuters forecast Australia’s A$1.9 trillion ($1.4 trillion) annual gross domestic product (GDP) would expand 2.2 percent in 2019, down from a prediction of 2.7 percent in the previous poll.

Growth was seen picking up to 2.6 percent in 2020, though that would still be short of the 2.75 percent rate considered trend.

There is plenty of scope for stimulus as inflation remains well-contained, having run below the RBA’s 2-3 percent target band for two whole years.

The latest poll showed analysts expected inflation of just 1.9 percent for this year, rising marginally to 2.2 percent in 2020.”