Australia reported better than anticipated GDP numbers this week with growth coming in at 3.3% in the September quarter, topping expectations of around 2.5%. The good news helped to provide some hope for the COVID battered economy.
Speaking in Canberra, Philip Lowe, Governor of the Reserve Bank of Australia, made the following statement:
“… we are now expecting GDP growth to be solidly positive in both the September and December quarters. And then, next year, our central scenario is for the economy to grow by 5 per cent and then 4 per cent over 2022.”
On another front, Greg Moshal, CEO of online SME lender Prospa, said his platform has experienced a rise in loan originations – a good indicator of growing confidence:
“It’s great to see GDP moving in the right direction. Prospa’s data from the September quarter shows a faster than expected recovery, with a strong uptick in SMEs looking for growth capital. New lending in the quarter saw hospitality increase by 361%, professional services increase by 303%, retail increase by 152% and building and trade increase by 126% on the prior quarter. That’s a good indication of a solid rebound and we’re seeing the boost in confidence and demand continue into the busy holiday season.”
While still not completely out of the woods, technically speaking, Australia is no longer in recession having bounced back from the 7% decline last quarter.
As of September 30, 2020, Prospa had originated over $1.65 billion in loans and served more than 29.4 thousand small business customers across Australia and New Zealand.
