2014.12.0304:47:59UTC+00Australian economic growth at slows down for back to back quarters

The economy of Australia unexpectedly slowed down for the second straight quarter, pushing its currency to the lowest in four years and reviving calls for reductions in its interest rates.

According to a report released by the Bureau of Statistics earlier today, Australia’s gross domestic product grew by only 0.3% in the past three months, compared to the 0.5% growth it registered in the previous quarter. The median prediction of economists was for a rise of 0.7%.

When put side by side with last year, the economy grew by 2.7% during the third quarter, lower than the 3.1% expected by economists. The 6.7% fall of construction in the non-dwelling sector contributed a 0.6 percentage point loss in GDP, while equipment and machinery added 0.3 points and household spending similarly contributing 0.3 points.

Chief economist Matthew Peter from Brisbane’ QIC Ltd. says that, “It must bring the potential of a rate cut back... The fall in the exchange rate will help the non-mining sectors of the economy but we’re going to have to wait for that to filter through.”

The surprise slowdown is seen to be another obstacle for Prime Minister Tony Abbott whose government is struggling to pass reductions in spending and an increase in taxes in order to narrow the country’s budget deficit.