Australia central bank lowers its growth forecasts for near-term
AFPSYDNEY -- Australia's central bank on Friday scaled back its near-term forecasts for economic growth, saying mining investment was unwinding faster than expected and a pick-up in China was unlikely this year.
August 10, 2013, 12:08 am TWN
The Reserve Bank of Australia said it now expected the resources-driven economy to expand 2.25 percent in the year to Dec. 31 and 2.5 percent in the 12 months to June 30, 2014.
It had expected 2.5 percent and 2.0-3.0 percent respectively in its May forecasts.
“The slightly weaker outlook than a few months ago reflects, among other things, the assessment that growth in China is now unlikely to pick up much, if at all, in coming quarters,” the bank said it its quarterly statement on monetary policy.
The bank said its outlook for mining investment had been revised lower after capital expenditure surveys showed “a significant decline” in resources industry spending and equipment imports amid softening commodity prices, particularly in the coal sector.