Parker Blackwood Advisers analysts highlight Australia's modest economic recovery, with GDP expected to rise but still lagging historical trends. Key risks include weak capital expenditure, sluggish productivity, and uncertainty around future RBA policy moves.
PERTH, AUSTRALIA / ACCESS Newswire / March 3, 2025 / Parker Blackwood Advisers, a leading financial services provider has commented on the latest Australian economic trajectory that will be under the spotlight this week as fresh data is set to provide a critical assessment of the nation's growth prospects. The December quarter national accounts, due for release by the Australian Bureau of Statistics (ABS) on Wednesday, are expected to confirm a modest acceleration in economic activity following a period of subdued expansion.
Consensus forecasts indicate that the economy likely expanded by 0.5% in the December quarter, up from 0.3% in the prior three-month period. If realised, this would translate to an annual GDP growth rate of 1.2% for 2024-a marked improvement from the 0.8% recorded in the September quarter but still well below the long-term historical average of over 3%.
"Productivity constraints and subdued private sector investment continue to weigh on economic momentum," said Nathan Jones, Chief Investment Officer at Parker Blackwood Advisers. "While fiscal policy and household spending provide some stability, sustained growth requires stronger business investment and improvements in labour productivity-key factors the RBA will be closely monitoring in its policy deliberations."
Investors will also scrutinise the Reserve Bank of Australia's (RBA) February meeting minutes, scheduled for release on Tuesday. The central bank's decision to cut interest rates for the first time in over four years signalled a shift in monetary policy, and market participants will be seeking further clarity on the likelihood of additional easing measures in the coming months.
Beyond GDP and monetary policy, Parker Blackwood Advisers note that key data releases will shed light on Australia's property market and government finances. CoreLogic's monthly Home Value Index, due on Monday, will reveal whether the recent housing downturn persisted into February, while building approvals data on Thursday will gauge progress toward the federal government's ambitious 1.2 million-home construction target over five years.
Additionally, retail trade figures on Tuesday, international trade data on Thursday, and household spending indicators on Friday will offer a broader view of consumer activity and economic strength. The government's fiscal position will also be under scrutiny, with the market anticipating a current account deficit of $13.4 billion when balance of payments data is released.
With a pivotal week ahead for economic data and central bank insights, investors and policymakers alike will be closely watching for signals on Australia's growth trajectory and policy outlook in 2024.
About Parker Blackwood Advisers
Founded in 2013, Parker Blackwood Advisers is a premier financial services provider based in Perth, Australia. With a focus on personalised investment strategies, the firm offers a broad range of wealth management solutions, including asset allocation, investment management, and financial planning. Managing over $4.7 billion in assets, Parker Blackwood Advisers is dedicated to helping clients achieve their financial goals through tailored, expert guidance.
Disclaimer
Parker Blackwood Advisers is a trading name of PBA Corporation Pty Ltd (ABN: 98 162 183 244), holder of AFSL 434-071. Investing carries risks, including potential loss of capital. Information provided is general and not financial advice. Past performance is not a guarantee of future results.
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SOURCE: PBA Corporation Pty Ltd
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