GDP fell as expected in Q3 21 but the fall was smaller than consensus. The 1.9% contraction was the third largest in history, driven by a fall in household consumption due to lockdowns in NSW, Vic and the ACT. Business investment, dwelling investment and net exports all added to growth, as did the government sector. Gareth Aird, Head of Australian Economics and Belinda Allen, Senior Economist run through the highlights particularly the divergence in state trends the continued accumulation of households savings, which is a large tailwind for consumption in 2022.
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