HSBC DOWNGRADES GROWTH FORECASTS FOR AUSTRALIA FOR 2013/14

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June 7, 2013

SYDNEY - A weaker recovery in Asia, a persistently high Australian dollar, and a slower-than-expected rebalancing from mining to non-mining led growth are weighing on Australia's growth prospects, according to HSBC, which has revised downwards its growth forecasts for 2013 from 2.9% to 2.5% and for 2014 from 3.1% to 2.8%. “The recent AUD depreciation should help support growth, but another RBA cut may also be needed,” says Paul Bloxham, HSBC Chief Economist for Australia and New Zealand. www.hsbc.com.au (ATI).