Central Banks Economic Indicators

-1.Australian Inflation target Click to view more on Australian Inflation target
The set inflation target for the RBA is currently set at 2–3 per cent, on average this was set by the RBA Governor and the Treasurer.The inflation target is set so low simply to maintain discipline when it comes to future monetary policy decision-making, and serves as an anchor for private-sector inflation expectations.
-Current inflation statusClick to view more on the Current inflation status
Yearly Reading:The current inflation reading for 2016 is 1,3 percent which shows a slight decrees from the 2015 Q3 yearly reading which came in at a 1,5 percent
Quarterly Reading : The previous Q3 inflation reading come in at 0.7 percent showing a great improvement from the Q3 inflation reading which came at 0.5 percent

2. RBA projected Growth (GDP)
The Australian economy expanded 0.5 percent in the 2 quarter of 2016, slowing from a downwardly revised 1.0 percent growth in the previous quarter and slightly below market consensus of a 0.6 percent growth. It was the weakest growth since the second quarter 2015, weighed down by net trade while investment was flat and final consumption remained steady Click to view more on the Australian GDP” target

3. Australian Employment status
-Overall Employment
Employment Rate in Australia increased from a 60.60 percent reading in August 2016 to a reading of 60.77 percent in September 2016 this is a great indication of healthy growth in economic activity. The Aussie economy grew by a margin of 3.3 percent this year from a 3.1 percent in the March quarter this was seid to be the highest reading since (Q2)June 2012, Click to view more on the Australian Overall employment rate” target

Unemployment rate
-The unemployment rate also decreased unexpectedly in September to a 5.6 percent reading from a higher august reading of 5.7 percent reading, this was the lowest jobless rate reading since September 2013 For more on Unemployment Click here

4. Australia’s production sector
-Major production sectors contributing to Australia’s GDP For more on Australia’s major production sectors click here
Australian is know to have a strongly commodity based economy therefore heavily relies on exports from its different sectors while mainly dependent on the production sectors for most of its revenue. The major sectors in Australia’s economy consist of the Mining sector which contributes 7% to the country’s GDP, The Manufacturing sector which contributes 12% to the GDP, The Agriculture sector contributing 3% at the farm gate and when value-added processing beyond the farm is included this figure rises to 12% another major sector is the Tourism sector which was recorded to have contributed 25% of the Australian GDP in 2010-11
For Australian Manufacturing sector readings click here
For reading on Australia’s Mining sector click here

Australia’s Imports and Exports
Australia is ranked the 21 largest exporter economy in the world, during 2014 a positive trade balance of $24.8B was recorded from a recorded export of $243B and a import of $219B.
-The top exports of Australia are Iron Ore, Coal Briquettes, Petroleum Gas, Gold and Crude Petroleum, using the 1992 revision of the HS (Harmonized System) classification.
Click to view top exports of Australia
-The top imports are Refined Petroleum, Crude Petroleum, Cars, Computers and Packaged Medicaments.Click to view Australia’s Imports

-Australia’s trade allies
The top export destinations of Australia are China ($82.9B), Japan ($43.1B), South Korea ($19B), India ($11.1B) and the United States ($10B). The top import origins are China ($45.7B), the United States ($24.5B), Japan ($15.4B), Singapore ($11.8B) and Germany ($10.6B).
Click to view more on Chine and Australia’s Imports and exports
Click to view more on Japan and Australia’s Imports and Exports
Click to view Singapore and Australia’s Imports and Exports

Fundamentals
-After the Us election we sore the Aussie Dollar weaken against the greenback simply because of the tariff Hike that is set to be imposed on china by the newly elected President Trump and is likely to continue to weaken until the actual announcement,but As much as the US has the leading Economy in the world the tariff Hikes could be of harm to the US economy simply because china could retaliate and lunch a trade war against the US which will impact negatively on the global economy, So I figure that before any drastic decisions from the Trump government they would have to consider that they could be triggering a potential global crises.
-Therefore I’ll remain a bull on the Aussie pairs
A report on the future relationship between China and Australians partnership was publish by the ANU press stating the new economic structure formation that china is looking to establish and how it will affect the Australian economy.Click to view the ANU press report 2016

Reserve Bank of Australia

2 thoughts on “Australian Economic outlook from Q3-Q4 161116”

  1. Thank’s George, great summary!!!!!

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