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A robust rebound

Economic activity in both Australia and New Zealand appears to have been pretty robust in the third quarter, with the latest data pointing to gain in GDP of around 0.7% q/q and 1.0% q/q respectively. That would be much improved from the 0.2% and 0.4% rises recorded in the second quarter and is partly due to the boost to exports from the weaker exchange rates. However, with the prices of the key commodity exports of both economies falling again, we don’t expect the third quarter to mark the start of a sustained pick-up in GDP growth. 

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