Australian economy bounces back to dodge recession
- Author: Joey Payne Mar 03, 2017,
Mar 03, 2017, 0:48
It also marked 102 quarters without recession, just one quarter short of the all-time record held by the Netherlands.
"The broad contours of the economy remain on track, with ongoing strength in mining exports following the mining boom, high levels of dwelling investment activity in the near term and ongoing growth in household consumption", Mr Fraser said.
The Reserve Bank of Australia (RBA) is counting on growth to pick up to around 3 per cent this year and next, thanks in part to surging exports of liquefied natural gas.
GDP has bounced back from a poor showing in the September quarter with December quarter seasonally adjusted growth of 1.1 per cent, while Western Australia snapped a five quarter streak of shrinking state demand to grow 0.4 per cent.
The NBS report revealed that the nation's GDP figures for the fourth quarter of 2016 contracted by -1.3 per cent, an improvement over the -2.24 per cent contraction of the third quarter of past year.
Fourth-quarter national output shrunk by 1.3 percent, it said.
Record-low interest rates of 1.5 per cent are supporting consumer spending and home building, but the RBA is wary of easing further for fear of stoking already-hot house prices.
"The terms of trade is now 15.6% higher than December quarter 2015". Real net national disposable income increased 2.9 percent for the quarter. Mining, agriculture, forestry and fishing and professional scientific and technical services contributed heavily to the GDP growth.
Figures released by the Australian Bureau of Statistics on Wednesday show Australia's gross domestic product (GDP) has now grown 2.4% through the year.
Two-thirds of the decline was due to a 39 per cent fall in non-monetary gold exports, which are notoriously volatile month-to-month and therefore likely to rebound.
Compensation of employees decreased 0.5 percent, but was 1.5 percent higher through the year.
Global Research, Standard Chartered bank, London, said that while the analysts were expecting a full year contraction (the actual print of -1.5% y/y is marginally better than our expectation of -1.7% y/y), it's the detail that makes for the more important reading.