SYDNEY, AUSTRALIA – MAY 30: The Sydney Harbour Bridge and skyline is illuminated during Vivid Sydney 2024 on May 30, 2024 in Sydney, Australia.<\/p>\n
Brendon Thorne | Getty Images News | Getty Images<\/p>\n
Australia’s economic growth beat expectations in the second quarter, expanding at 2.1% year on year, data released Wednesday showed.<\/p>\n
Economists polled by Reuters had estimated growth at 1.8%, while the economy had expanded by 2.5% in the prior quarter. <\/p>\n
On a quarter-on-quarter basis, GDP rose 0.4%, also marginally surpassing expectations of 0.3%. The slight growth was driven by private demand and mining exports.\u00a0<\/p>\n
The Australian Bureau of Statistics said in its statement that households continued to behave cautiously, with spending remaining subdued and rising just 0.4%. Due to the Middle East conflict, households reduced fuel consumption due to elevated prices, and cut domestic and international travel.<\/p>\n
The stronger-than-expected GDP print will allow the Reserve Bank of Australia room to go ahead with its policy tightening as it seeks to curb inflation.<\/p>\n
At its last meeting<\/a>, some RBA board members had considered the case for additional tightening, saying that inflation in the country was still too high. <\/p>\n