**As seen in Risk In The Week report 02/24/23, cablefxm.co.uk/reports
The Australian economy expanded by 5.9% Y/y in Q3, this was faster than the prior 3.6% but a miss on the consensus expectation of 6.3%. On a quarterly basis, growth expanded at 0.6%, a slight miss from expectations of 0.7%. Imports contributed by a -0.8%, while exports filled in a 0.6% on the quarter, the former posted its fourth consecutive quarter of negative contributions. General government consumption led to a neutral weight on growth, while household consumption pushed output higher by 0.6% down from the prior 1.1%. Looking ahead, the most recent survey compiled by Bloomberg showed economists expectations pencilling Australian growth at 0.4% in Q1 and 0.3% in Q2 of this year. Forecasters see overall growth in 2022 at 3.6% Y/y, unchanged from the prior survey. Economists at Westpac stand in line with market consensus, the arithmetic for their Q4 GDP growth forecast comes from domestic demand contributing 0.3% and a 0.4% advance from net exports and inventories. Westpac notes that the economy seems to post mixed signals as the services sector keeps momentum given less Covid disruptions, however, retail sales and housing are weighted by higher interest rates.
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