Melbourne, Australia – The Australian Bureau of Statistics reported that Australia’s GDP grew by 0.2% in the final quarter of 2023. This growth was primarily driven by government spending and private business investment, slightly below the 0.3% rise estimated in a Reuters poll. Katherine Keenan, head of national accounts at ABS, noted that growth remained stable in December but had slowed throughout 2023.
Government expenditure and private business investment were identified as the main factors contributing to GDP growth during this quarter. Real GDP for the twelve months leading up to December showed a 1.5% increase, slightly higher than the 1.4% forecasted in the Reuters poll. This growth outlook is a positive sign for the Australian economy as it navigates through various challenges.
In South Korea, inflation quickened beyond expectations in February after three consecutive months of decline. The inflation rate rose to 3.1%, surpassing the 2.8% recorded in January and the 2.9% expected by a Reuters poll. The country’s core inflation rate, which excludes food and energy prices, stood at 2.5%. South Korea’s central bank had made the decision to halt rate hikes early in 2023, maintaining a base rate of 3.5%.
On another front, Tesla experienced a decline in its stock value due to issues in China and a factory shutdown in Berlin. Sales of China-made vehicles dropped by 19% year-over-year in February, with production at the Berlin factory halted following a suspected arson attack. Despite these challenges, Tesla remains optimistic about its future prospects.
Meanwhile, oil prices saw a slight decrease following China’s commitment to boost economic growth and OPEC+ extending its production cuts. Crude oil futures dipped as China announced plans for a 5% economic growth target in 2024 and issued special treasury bonds to fund major projects. OPEC+ agreed to continue production cuts of 2.2 million barrels per day through the second quarter, impacting oil prices in the market.