Australia's second-quarter gross domestic product (GDP) growth is forecast to be 0.5% quarter over quarter and 2% year over year, bringing the yearly increase in GDP back to a rate broadly consistent with the Reserve Bank of Australia's estimate of potential growth, ANZ Research said in a note on Tuesday.

The bank's initial estimate for the GDP was 0.4% quarter over quarter growth and 1.9% year over year growth.

GDP (expenditure) is likely to rise 0.1% quarterly and 1.7% on an annual basis, ANZ said. Household consumption is expected to rise 0.5% quarterly after a similar increase in the first quarter.

Public demand will rise 0.2% quarter-over-quarter, ANZ said, adding that this gives a weak picture for domestic demand in the quarter, which is expected to be up just 0.1% on a quarterly basis.

GDP (production) is expected to rise 0.5% on a quarterly basis and 2.2% on an annual basis. Real GDP (income) is forecast to rise 0.8% on a quarterly basis and 2.2% on a yearly basis. Productivity is likely to be little changed in the second quarter, ANZ said.