Latest news with #economicforecast
ABC News
2 days ago
- Business
- ABC News
Australia's economic growth slows to 0.2 per cent in first quarter, missing expectations
Australia's economy grew by 0.2 per cent in the March quarter, and 1.3 per cent through the year, according to the Australian Bureau of Statistics (ABS). It means economic growth slowed in the first three months of the year, from 0.6 per cent at the end of 2024, and missed expectations. GDP per capita fell 0.2 per cent this quarter, following a 0.1 per cent rise in the December 2024 quarter, the ABS said. In its latest economic statement, the Reserve Bank had forecast annual GDP growth of 1.8 per cent in the June quarter, picking up to 2.1 per cent by the end of the year — a downgrade to its forecasts prior to the Trump administration's tariff announcement.
The Independent
2 days ago
- Business
- The Independent
UK growth downgraded as global economy dragged by Trump trade wars
UK economic forecasts have been downgraded for the next two years as trade tensions linked to US President Donald Trump's tariff plans hit the global economy, according to a new report. The Organisation of Economic Cooperation and Development (OECD) has also cut its projections for global growth in 2025 and 2026. Economists from the influential organisation cautioned that the global outlook is 'becoming increasingly challenging'. In the UK, the economy is expected to grow by 1.3% this year, with the OECD cutting its previous forecast of 1.4%. It also reduced its prediction for 2026 from 1.2% in its March report to 1%, blaming the cuts to forecasts on 'heightened trade tensions, tighter financial conditions, and elevated uncertainty'. The report added: 'Inflationary pressures will initially linger, due to higher import prices and robust wage growth in 2025, but subside over 2026, as spare capacity emerges and the labour market loosens.' The OECD also highlighted that substantial debt payments will continue to weigh on the UK's state finances and 'push up public debt'. It comes despite the Chancellor Rachel Reeves' pledge to reduce the debt burden. The UK economy grew by 0.7% over the first quarter of the year but the OECD highlighted that 'momentum in weakening' as business sentiment deteriorates. Businesses have been affected by heightened uncertainty linked to US tariff plans, which were initially launched at the start of April but have seen certain policies change over the past two months. The OECD said on Tuesday that it expects global economic growth to slow to 2.9% this year and in 2026 from 3.3% in 2024, on the assumption 'that tariff rates as of mid-May are sustained despite ongoing legal challenges'. It highlighted that this slowdown is set to be concentrated in the United States, Canada, Mexico and China.
Reuters
22-05-2025
- Business
- Reuters
Singapore GDP grows 3.9% y/y in Q1 2025, slightly above advance estimate
SINGAPORE, May 22 (Reuters) - Singapore's economy grew by 3.9% in the first quarter of 2025 from a year earlier, government data showed on Thursday, slightly higher than an official advance estimate of 3.8% released last month. On a quarter-on-quarter, seasonally-adjusted basis, gross domestic product contracted by 0.6% in the January-March period, compared with an advance estimate of a 0.8% contraction. The trade ministry maintained its GDP growth forecast for 2025 at 0.0% to 2.0%, after revising it downwards from 1.0% to 3.0% in April.
Reuters
21-05-2025
- Business
- Reuters
German economic advisory panel forecasts stagnation this year
BERLIN, May 21 (Reuters) - The German Council of Economic Experts cut its economic forecast for the German economy on Wednesday, now expecting Europe's biggest economy to stagnate this year as it sees a "pronounced phase of weakness". The academic body that advises the German government on economic policy had predicted the economy to grow 0.4% this year in its previous forecasts published in November. Germany was the only member of the G7 advanced economies that failed to grow for the last two years, burdened by fiscal restraints and an industrial downturn. The tariffs announced by U.S. President Donald Trump are expected to deal a major blow to its export-oriented economy. "The German economy will be significantly influenced by two factors in the near future: U.S. tariff policy and the fiscal package," said Monika Schnitzer, chairwoman of the Council of Economic Experts. The U.S. was Germany's biggest trading partner in 2024 with two-way goods trade totalling 253 billion euros ($284 billion). On the bright side, Germany approved in March a fiscal plan which includes a 500-billion euro special fund for infrastructure investments, and largely removes defence investment from rules that cap borrowing. The fiscal package offers opportunities to return to a growth path, economists say. Starting in 2026, the funds provided by the fiscal package will set positive impulses for investment in construction and equipment as well as government spending, the council said, forecasting 1.0% growth next year. Private consumption is also expected to grow somewhat stronger in 2026 compared to 2025, as disposable incomes will increase more significantly in real terms, the council added. ($1 = 0.8898 euros)
Reuters
19-05-2025
- Business
- Reuters
Chile's economy grows more than expected in first quarter
SANTIAGO, May 19 (Reuters) - Chile's gross domestic product grew 0.7% in the first quarter of 2025 from the previous three-month period, central bank data showed on Monday. The result came in slightly above the 0.5% expansion expected by economists in a Reuters poll. The Andean nation's economy was up 2.3% in the first quarter from a year earlier, the central bank added, also above the 2.0% forecast in the Reuters poll. Trade, manufacturing, personal services, and agricultural activity were the main contributors to GDP growth, Chile's central bank said, while mining, financial services and construction registered declines. "Looking ahead, we expect growth to slow gradually over the coming quarters as the impact of temporary drivers fades and external conditions become less favorable," Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, said in a note to clients. The slowdown should not be a major worry, as leading indicators suggest that activity in Chile will remain relatively strong, Abadia added. The central bank also released on Monday a poll of analysts showing that they expect interest rates to be held at 5% at the bank's next monetary policy meeting in June.
