Australia may see weaker growth rate in H1 16

The growth rate of leading indicators in Australia is disappointing last five month as it is growing rate below trend. This gives an indication that the Australian economy will post a weaker growth rate in first half of 2016. 

Australian government revised down its real GDP growth forecast to 2.5% in 2015/16 and 2.75% in 2016/17. Reserve Bank of Australia, in contrast, estimates 2.25% growth for 2015/16 and 2.5%-3.5% in 2016/17. 

However, the growth rate is expected to remain marginally steady next two years, as no factors are found to give a strong boost to the economy. Therefore, the economy is expected to grow at 2.8% in 2015/16 and 2.7% in 2016/17, estimates Westpac.