Australia’s Economy Continues to Slow as Rates, Costs Crush Confidence

[andhra_jp]

SYDNEY—Australia’s commodity-rich economy continued to slow in the final months of 2023, adding to concern that a hard landing is coming, especially if the Reserve Bank of Australia delivers on its recent comments that further interest-rate hikes are possible.

The economy grew by 0.2% sequentially in the fourth quarter, and by 1.5% from a year earlier, moderating from year-over-year growth of 2.1% in the third quarter, the Australian Bureau of Statistics said Wednesday. Economists had expected growth of around 0.2% on the quarter and 1.4% compared with a year earlier.

“For the fourth consecutive quarter, economic activity declined on a per capita basis, and the 1% decline over the past year is the largest Australia has experienced in 33 years, excluding the pandemic. Population growth is the only thing standing between Australia and recession,” Pickering said.