Australias annual economic growth slows to 2.1% in June quarter

Australia's economy grew by 0.4 per cent in the second quarter of 2023 on the back of rising services exports, official statistics revealed on Wednesday. The Australian Bureau of Statistics (ABS) on Wednesday released the latest national accounts data, revealing the nation's gross domestic product (GDP) grew by 0.4 per cent between April and June and by 2.1 per cent in the 2022-23 financial year. It is unchanged from the 0.4 percent growth in the first quarter of 2023 from January to March, but the annual growth rate fell from 2.4 per cent in the 12 months to the end of March.

Katherine Keenan, head of national accounts at the ABS, said in a statement that capital investment and services exports were the main driver of GDP growth in the June quarter, reports Xinhua news agency. "This was the seventh straight rise in quarterly GDP, and annual growth remained above trend, reflecting the absence of significant Covid-19 disruptions, such as lockdowns, in 2022-23," she said.

According to ABS data, services exports rose by 12.1 per cent in the June quarter as the number of international students and tourists arriving in Australia continued to recover from the Covid-19 pandemic.

Responding to the figures at a press conference in Canberra, Treasurer Jim Chalmers said it was a "steady result in difficult circumstances" but warned of short-term economic headwinds. "While we have been clear and upfront that we expect our economy to slow considerably over the next year, we enter this period of uncertainty from an enviable position," he told reporters. "The Australian economy grew faster than most of the major advanced economies through the year to June quarter 2023."