The Australian economy recorded a smaller-than-forecast contraction in the third quarter, indicating that the impact caused by the Covid-19 closure was not as initially feared.
According to data released by the Australian Bureau of Statistics (ABS), Gross Domestic Product (GDP) contracted 1.9% in the third quarter, compared to expectations for a larger contraction of 2.7%.
The contraction also showed a clear impact from the coronavirus closures implemented in New South Wales and Victoria throughout the September quarter.
The restrictions were reflected in a 4.8% drop in household consumption expenditure and a 5.8% decline in services expenditure focused on hospitality, recreation and culture as well as transportation.
Meanwhile, the annual GDP growth rate expanded to 3.9% from 9.6% in the second quarter and again beat the forecast of 3.0%.
In the wake of this better -than -expected data, the Aussie dollar re -climbed by wiping out almost all of the losses recorded in the previous session following the US dollar’s surge.
During the Asian session, the antipodean currency traded higher at around 0.71600 against the greenback dollar.
