RBA Buoyant Economy Outlook, Rise in Retail Sales Growth

The Reserve Bank of Australia has a positive outlook in the two years that the economy will grow except for the unemployment and/or wage growth that is predicted to have a sluggish development. This signals that interest rates will put on hold for some time. The growth is forecasted to reach A$1.7 trillion equivalent to $1.4 trillion, much higher than the “potential” growth of 3 percent in the succeeding few years.

In line with this, the sales growth reached 1.5 percent in the second quarter, according to the Australian Bureau of Statistics. This has been the highest recorded growth in the period of four years. Although the retail data do not depict the whole quarterly expending figure nationally, this gives off a clear positive indication from a flat result in the first quarter that accelerated in the next quarter.

Business companies profits also rallied that includes the business confidence and situation has been the strongest since nine years ago. The country has also a run trade surplus in the past seven months. It seems that the GDP has also recovered in the previous quarter and this should be maintained amid decreasing mining investments.