Sarah Hunter, Chief Economist at BIS Oxford Economics joins Deirdre Bolton from Ausbiz to discuss the June quarter key account data.
Second quarter growth figures soundly beating estimates yesterday, with GDP rising by 0.7% in the period, compared with the 0.4% tipped by economists. Growth was dominated by government spending and household consumption. GDP is always inherently backward looking, notes Sarah Hunter from BIS Oxford Economics and right now it is more backward looking due to extended COVID-19 lockdowns in the two largest states in the economy. Sarah says the September quarter is likely to see GDP contract by around 3%. We are amidst an economically challenging period, and a severe downturn in the economy, says Sarah, and it'll be interesting to see the response of households and businesses as vaccination rates hit targets, and restrictions do begin to ease.
Watch and listen to the video interview below: