Oil hits a six-month low and the US dollar drops 1% on fears trade wars will lower global growth. Private spending helps Australian GDP grow 0.6% in Q4. China sets a new growth target of 5%, and the Reserve Bank of New Zealand’s Governor resigns.
In our bonus deep dive interview, ANZ Head of Australian Economics Adam Boyton looks at whether the GDP growth Australia experienced at the end of 2024 can be sustained through 2025.
5 things to know in 5 minutes:
Global markets turmoil continued overnight. Oil prices fell more than $2 a barrel to six-month lows and the US dollar was down another 1% on fears trade wars will hit global growth and demand. ANZ Economist Bansi Madhavani says markets are watching Donald Trump’s tariffs talk closely.
Australia’s economy grew 0.6% in Q4 from Q3, led by private sector spending growth, says ANZ Senior Economist Adelaide Timbrell.
Adelaide says ANZ Research expects to see the private sector strengthen even more in coming quarters.
China announced an annual GDP growth target of “about 5%” at its National People’s Congress yesterday. ANZ Senior China Strategist Zhaopeng Xing says the Government in Beijing will have to pick up spending to achieve the 5%, given headwinds later this year from Trump’s tariffs.
RBNZ Governor Adrian Orr resigned unexpectedly and without explanation yesterday. ANZ New Zealand Chief Economist Sharon Zollner says market reaction was muted as the cash rate is set by a committee.
Cheers,
Bernard
PS: Catch you tomorrow with a rates decision overnight by the European Central Bank. ANZ Research expects a 25 bps cut to 2.50%.
