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Growth in 2021 likely to be stronger than most expect

The rebound in GDP in Q3 was led by a big rebound in consumption. Consumption growth should slow in Q4, but with many states relaxing restrictions, we’re still forecasting a solid rise. What’s more, other GDP components will probably make a bigger contribution in Q4, so GDP growth may only slow from 3.3% to 2.5%. That supports our view that the Australian economy is going to recover faster than most expect, allowing the RBA to phase out QE in April.

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