Topics:  abs, aud, ecoonomy, gdp, rba, terms of trade

Economic outlook surprisingly fair

ECONOMIC growth is expected to rise to 3.5% by year's end, the Australian dollar will remain high and coal and iron ore prices will continue to fall, a monthly market update revealed on Monday.

Westpac released chief economist Bill Evans' monthly update on Monday, signalling continued troubles overseas, while forecasting Australia's gross domestic product to rise 0.2% by December.

The update said the recent increase in the Australian dollar, up another four cents to $1.06, had exceeded forecasts and came despite further deterioration in commodity prices and the terms of trade.

"This move has pushed the dollar into extreme overvalued territory when compared with our fair value estimates," he wrote.

"Some near term correction seems reasonable before a further surge based around a turning point in commodity prices.

"Prices for iron ore and coal had already fallen almost 40% since the 2011 peak, with expectations for another 5% to 10% to be shed from the market value of Australia's most significant exports.



Local Real Estate

Featured Jobs

Tweed jobs listed daily



Around the Network

Local Partners

LATEST DEALS AND OFFERS

Cars For Sale

Find cars for sale online now.
Learn More

Property Listings

Search for a property online right now.
Learn More

Local Profile

Stay Connected

Get the news as it happens, in your inbox

You can change the newsletters you are subscribed to when you edit your profile

Edit Profile


Special Offers

Latest deals and offers

Horoscopes

Aries

You may have to say ‘yes’ to your partner, even if you're feeling a little stressed and dominated by them. By disagreeing...

read more

Marketplace

Special Offers & Promotions

Compare & Save