WEEKEND ECONOMIST: Testing the GDP waters

Australia's fourth quarter GDP figures should show we were faring well before the floods. Meanwhile, New Zealand's economy is set to take a big knock from Tuesday's tragic earthquake.

The National Accounts, to be released on Wednesday, will provide an update on the growth pulse of the Australian economy. Our forecast for fourth quarter GDP growth is 0.8 per cent/quarter, or 2.8 per cent/year. That follows the official initial estimate for the third quarter of 0.2 per cent/quarter, or 2.7 per cent/year, and precedes disruptions to production by devastating floods in January.

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