Key facts
- Australia's economy grew 0.3% in the March quarter.
- Australia's annual economic growth was 2.5%.
- Net trade subtracted 0.8 percentage points from Australian Q1 GDP growth.
- Australian business investment surged 16.3% in Q1.
- Australia's trade surplus rebounded to A$1.8 billion in April.
- Australian exports rose 7.2% in April, driven by resources.
- Brazil's Q1 GDP grew 1.1% quarter-over-quarter.
- Brazil's Q1 GDP grew 1.8% year-over-year.
- Singapore's retail sales grew 5.4% in April.
- US CPI data and the Federal Reserve's policy decision are due.
- Australian dwelling prices have dipped again.
Global economic activity presents a varied picture with recent data releases from several nations. Australia's economy expanded by 0.3% in the March quarter, a deceleration from the 0.9% growth recorded in the previous quarter. The annual growth rate stood at 2.5%. Net trade acted as a detractor, reducing growth by 0.8 percentage points due to an increase in imports. Conversely, business investment saw a significant surge of 16.3%, while household consumption experienced modest growth. The Reserve Bank of Australia is widely expected to maintain its current interest rates. In a separate development, Australia's trade balance swung back to a surplus of A$1.8 billion in April, recovering from a deficit in March. This rebound was fueled by a 7.2% increase in exports, primarily driven by iron ore and coal, while imports rose by 0.8%, largely due to increased fuel shipments.
Brazil's Gross Domestic Product (GDP) demonstrated acceleration, growing by 1.1% quarter-over-quarter in the first quarter. This marks an increase from the revised 0.3% growth in the fourth quarter of 2025. The year-over-year growth rate held steady at 1.8%. This performance was primarily driven by an acceleration in private consumption. However, investments contracted for the second consecutive quarter. The modest GDP figures are anticipated to bolster the case for an interest rate cut by the central bank in June. Meanwhile, India's economic growth is projected to have moderated to 7.2% in the January-March quarter, according to a Reuters poll. This slowdown is attributed to weaker external demand and softer industrial activity, which are expected to counterbalance robust government spending and resilient agricultural growth. The data highlights the nation's continued reliance on capital expenditure for economic expansion.
Singapore reported an acceleration in its retail sales growth, which rose to 5.4% in April, up from 4.6% in the preceding month. This indicates a strengthening trend in consumer spending within the city-state. In the United States, financial markets are keenly awaiting the release of Consumer Price Index (CPI) data, which will provide crucial insights into inflation trends. Concurrently, the Federal Reserve is scheduled to announce its policy decision regarding interest rates. Investors will be scrutinizing the Fed's forward guidance for indications on the future path of monetary policy. The Beige Book, a report detailing economic conditions across the Federal Reserve's twelve districts, is also due to be released, offering regional economic perspectives.
Australian dwelling prices have experienced another decline, continuing a downward trend in the housing market. This suggests persistent challenges or a cooling-off period affecting property values.