Daily Flows & Insights – Gloomy GDP Growth As Population Props Up Print

Daily Flows

  • A foreign A1/A name has been paying 5.19% for 6 month term deposits this week, attracting significant flows from investors.
  • Market rate for domestic A2 issuers is +45 this week for 3 month NCDs, with a number of ADIs coming to market.
  • We saw further flows in fixed and floating-rate semis yesterday, with WATC continuing to be a popular issuer for both.


Gloomy GDP Growth As Population Props Up Print

  • GDP printed as expected yesterday with growth of 0.2% from the September quarter and 1.5% from Q4 last year, the latter among the lowest annual growth rates since the turn of the century.
  • For just the third time in the last four decades, the data indicated that Australian economy shrunk over the calendar year when excluding the impact of population growth.
  • On a quarterly basis, the 0.2% growth was bolstered by an 0.6% increase in net exports, which was less a boost in exports and more due to imports falling 3.4% QoQ.
  • Looking forward, the RBA expects annual GDP growth to fall as low as 1.3% in the June quarter before picking back up towards the 2% recent short-run average by the end of 2024.


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Curve Team
Josiah Binet