Australia's economy grew at a slower-than-expected pace in the third quarter, underscoring growing concerns about its outlook and calls for the central bank to undertake easing measures.
Gross domestic product (GDP) for the July-September period rose 2.7 percent on year, government data showed on Wednesday, falling short of a forecast in a Reuters poll for a 3.1 percent gain. This compares with an annual 3.1 percent in the second quarter.
Quarter-on-quarter, GDP climbed 0.3 percent, missing expectations for a 0.7 percent increase and falling from the 0.5 percent rise in the second quarter.
The Australian dollar dived to fresh four-year lows in response, dropping two-thirds of a U.S. cent to $0.8397, its weakest since mid-2010.
"It's a disappointing performance and there are a lot of challenges facing the domestic economy. The real rate of GDP growth is slowly, and you've also got the nominal measures of GDP growth slowing as well with the terms of trade down, corporate profits weakening and household incomes sluggish," said Matthew Circosta, economist at Moody's Analytics.