Australian economy forecast to expand

Scott Morrison is set to be handed some positive economic news, having switched hats from treasurer to prime minister.

Economists have tipped the national accounts to show 0.7 per cent growth in the June quarter, when they are released on Wednesday.

The rise would mean the economy had expanded by 2.8 per cent compared with a year before.

Based on figures released this week that play a role in it, there’s a small chance growth could be steeper, some economists believe.

Mr Morrison was treasurer when it was confirmed the economy had grown by 1.0 per cent in the March quarter, it’s highest level in almost two years.

A rebound in exports played a role and the rise lifted the annual growth rate to 3.1 per cent – faster than most economists had predicted.

Reserve Bank governor Philip Lowe on Tuesday said the economy is estimated to have grown at an above-trend rate in the first half of 2018.

“Business conditions are positive and non-mining business investment is expected to increase,” he noted.

His comments came after the central bank left the cash rate unchanged at 1.5 per cent for the 25th month in a row.

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