The Asian session market was shocked by a strong reading in Australian economic growth data in the second quarter influenced by the early implementation of coronavirus closure measures.
According to the Australian Bureau of Statistics (ABS), gross domestic product (GDP) rose 0.7% in the second quarter, exceeding expectations to grow only 0.5%. However, this recorded reading is down from the revised figure in the previous quarter at 1.9%.
This also gives an indication that Australia’s economic growth has shown a slowdown ahead of coronavirus closure measures in the country being implemented.
The largest economy in New South Wales (NSW) closed in June, but other states have yet to implement it. The full impact of other closures, particularly with the addition of the state of Victoria, was not fully disclosed until third quarter data.
Third quarter GDP growth will also depend on the easing of restrictions as vaccination rates are expected to increase above 70% which is targeted to happen in October in some states.
Meanwhile on an annual basis, the economy grew at the fastest rate at 9.6%, from the severe contraction experienced in the second quarter of last year where full closures were implemented.
The Aussie dollar failed to react following the reading of this published data, where the currency remained unchanged around 0.7350 against the greenback dollar.
