The trade deal between the US and China may improve confidence in Australia helping end the drag from private investment. But prospects of a deal probably also contributed to the appreciation in the exchange rate since October last year. And China’s agreement to increase purchases of US energy exports could limit the contribution from LNG exports to GDP growth in Australia. Taken together, the trade deal will be a headwind to export growth in Australia.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services