SYDNEY: A spike in Australian imports due to the strong local dollar dampened hopes of a sharp economic rebound, figures showed Tuesday, with economists predicting second-quarter growth of just 1.0 percent.
Current account deficit data released by the Australian Bureau of Statistics (ABS) showed a 4.3 percent rise in imports in the three months to June while exports increased just 2.6 percent.
"This is expected to detract 0.5 percentage points from growth in the June quarter 2011 volume measure of gross domestic product," the ABS said.
Analysts said the muted data meant second-quarter growth data -- due out Wednesday -- was likely to come in at around 1.0 percent.
"We retreat to our original GDP forecast of +1.0 percent on-quarter, +0.7 percent on-year," said TD Securities' Annette Beacher.
Australia's economy contracted 1.2 percent in the first three months of 2011 after floods and cyclones hit vital mining and farming areas, but it is expected to rebound strongly as coal exports pick up and the mining boom grows.
The nation's central bank slashed its full-year growth forecast from 4.25 percent to 3.25 percent last month due to the coal industry's slow recovery and cooling consumer spending.
The government expects growth of 2.25 percent for the 12 months to June 30 and a strong rebound to 4.0 percent for the 2011-12 financial year.
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