Net exports to subtract 0.8 percentage points from Q1 GDP
Australia’s net trade is expected to subtract 0.8 percentage points from Q1 GDP due to a surge in data centre and fuel imports, and a decline in commodity exports.
The current account deficit widened to $27.1 billion in Q1, from a revised $23.0 billion in the prior quarter, exceeding forecasts of $23.2 billion.
Government spending was flat in Q1, with operational spending down 0.2% to $159.3 billion and public fixed asset investment up 0.9% to $38.9 billion.
Inventories are expected to add 0.2 percentage points to growth, providing a partial offset to the net trade decline.