Economist predicts weak GDP growth

by |
The chief economist of an ETF platform provider has predicted a weak fourth quarter for economic growth.

GDP figures for the final quarter of 2015 are set to be released today by the ABS, and BetaShares chief economist David Bassanese has predicted the figures will reveal growth to have been sluggish.

"The Australian economy appears to have limped to the finish line in 2015, as we anticipate relatively weak growth of only 0.3% to be recorded when the national accounts are released at 11.30 am Wednesday morning," Bassanese said.

Bassanese predicted weak private demand, "led by ongoing deep declines in mining investment, lacklustre non-mining investment and still only cautious consumer spending".

In spite of this, Bassanese said the RBA is unlikely to move on rates in the near future.

"The Reserve Bank appears to be firmly on hold until such time as the unemployment rate begins to trend higher again, which we still see as a risk in the second half of this year as the housing sector slows."

WP forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions