Fears about the Australian economy entering into recession picked up as figures released by the Australian Bureau of Statistics showed that Australian GDP grew by 0.1% (seasonally adjusted) in the September quarter, slightly below expectations of 0.2%.
This was the slowest quarterly GDP growth rate in eight years. Annual GDP in the year to September grew by 1.9%, down from 2.7% GDP growth in the year to June.
Meanwhile, Australia seems to be facing the same productivity challenges that New Zealand has, with the Australian year on year productivity index falling 0.7% in the year to September.
The Reserve Bank of Australia cut its official cash rate by 100 basis points on Tuesday, above expectations of a 75 basis point cut, in an attempt to to help the faltering Australian economy as the global economic outlook continues to darken.
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