Australia’s economic growth picked up stronger in the first quarter, setting aside gloomy expectations due to Omicron -related disruptions and flooding on the east coast earlier in the year.
The Australian Bureau of Statistics (ABS) reported gross domestic product (GNP) grew 0.8% in the first quarter from expectations of 0.6% by the market, but declined from 3.6% in the previous quarter.
The surge in commodity prices due to the war in Ukraine has benefited Australia as a major exporter of iron ore and energy products in the first three months of this year by driving up exports.
However, this growth was limited by the closure of Covid-19 in Shanghai which affected more than a third of Australian exports destined for ports on China’s east coast.
Meanwhile, the domestic outlook looks weaker as soaring inflation has prompted the Australian Central Bank (RBA) to raise interest rates faster.
Inflation has risen to its highest level in more than 20 years in the first quarter, with economists expecting worse in the next quarter.
Following the publication of this data, the Aussie dollar showed a slightly changed reaction by remaining traded at a four -week high against the US dollar during the Asian session.
