Goldman Sachs decrease its forecast for Australia’s financial development in 2025 on Trump vs China
Goldman Sachs lowered its forecast for Australia’s financial development in 2025 (data comes through Bloomberg (gated)):
- forecasts Australian home product (GDP) rising 1.eight% in 2025, down from its earlier forecast of two%
GS cite possible “destructive spillovers” from the incoming Trump’s anticipated improve in tariffs on China, particularly the affect on Australia’s exports to China. Trump has promised 60% tariffs on exports from China
GS’ Reserve Financial institution of Australia outlook:
- forecasts a 25bp rate of interest minimize from the Financial institution in February 2025
- terminal fee of three.25% by November 2025
- “increased US tariffs on China as having a dovish read-through for Australian charges”
- GS specific wariness over additional fiscal stimulus in Australia forward of the 2025 federal election, warn of upside dangers to charges
This text was written by Aaron Cutchburt at www.ubaidahsan.com.
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