Australian Economy Will Decline In 2018, Says Evans

According to some readings, Australia’s economic growth may decline in 2018, while the Reserve Bank of Australia (RBA) is planning for a rate hike and this will be the first time in late 2010.

The Westpac-MI Leading Index gauges the domestic and international indicators in speculating the possible outlook of Australian economy within 3-9 months. However, the composite index is down to -0.19% in the previous month and stayed in the negative zone for three consecutive months.

With the -0.19% result may indicate that Australian economy will decrease lower than 2.75%, this is generally known to be the current trend rate of the country. On March 2017, the rate came in at +1.13%.

According to Westpac chief economist, Bill Evans, the latest predictions would affect those who anticipated that the GDP growth for 2017 will reach 3%, the expectant, including the RBA may likely end up disappointed. In spite of the mixed data for this period which may further drag down the headline index, Evans remained unchanged with his views that economic growth of the county will still be lower next year.