Barclays write "incorporating today's.....>

AUSTRALIA: Barclays write "incorporating today's releases, we maintain our Q4 18

GDP projection at 0.4% q/q sa (BBG consensus: 0.5%). On a y/y basis, our

forecast remains at 2.6% y/y. Net exports' -0.2pp contribution to headline GDP

growth was marginally more negative than market expectations & our forecast.

However, higher government consumption (up 1.8% q/q) meant public spending was

stronger than we had assumed, while government capex improved by a modest 0.3%

q/q sa. Combined, we and the ABS estimate that public spending overall

contributed 0.3pp to overall GDP growth in Q4 18, similar to its contribution in

Q3 18. The hit to Q4 18 GDP from net exports was slightly bigger than the -0.1pp

we had anticipated, as real goods exports fell 0.9% q/q and real goods imports

rose 0.4% q/q sa. This will be a slightly larger subtraction, but one that gets

negated by the larger-than-expected increase in public consumption. The current

account deficit (sa) narrowed further to AUD7.2bn in Q4 18, less than the

revised deficit of AUD10.8bn in Q3 18 (previously AUD10.7bn deficit).

Australia's current account deficit for 2018 came in at AUD40.7bn, which is

about 2.1% of GDP, significantly below the 2.6% of GDP deficit run in 2017."