Australia avoids a double-dip recession. Q2 GDP +0.7% q/q (0.5% expected).

The commonly accepted definition of a recession is two consecutive quarters of contracting GDP ('negative growth'!).

Since Q3 will, without question, record contraction there was a lot of focus on this Q2 figure.

Q2 comes in at +0.7% q/q

• expected 0.5% q/q, prior 1.8%

And +9.6% y/y ... this stunning result is due to comparison with, i.e. 'base effect', a monumentally bad Q2 2020 in the midst of nationwide lockdown

• expected 9.2% y/y , prior 1.1%
• +9.6% y/y is a record high result

0.7% q/q is a solid result, better than the +0.5% (or +0.4% depending on the survey you looked at) expected. As I mentioned earlier in one my preview posts today (links below) the partial indicators we had seen were pointing to solid domestic demand and big government spending supporting ('propping up' if you prefer, I couldn't possibly comment) growth going into the troubles of Q3. The strength of the economy heading into the lockdowns is encouraging and, if history repeats (likely) once the country exits lockdowns ... who know when ... the economy should bounce back well yet again.

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Background to this here:

• More on what is expected from Australia's economic growth data due today
• Australian GDP data for Q2 - forecasts downgraded after export miss
• Preview - Australia GDP data due today, "manufactured recession" to be confirmed?