Australia’s economy expanded more than expected in the second quarter of the year, marking the fastest pace of growth since September 2023.
The country’s GDP grew 1.8% year over year, higher than the 1.6% expected by economists polled by Reuters, and higher than the 1.3% seen in the previous quarter.
On a quarter-over-quarter basis, Australia’s GDP grew 0.6%, compared to 0.5% forecast in the Reuters poll.
The GDP reading comes after the Reserve Bank of Australia cut rates by 25 basis points to 3.6% during its most recent monetary policy in August, and also sounded a more optimistic note in its monetary policy statement.
The central bank said that while uncertainty in the world economy remains elevated, there is a little more clarity on the scope and scale of U.S. tariffs and policy responses in other countries, which means that more extreme outcomes are likely to be avoided.
