Australia GDP Adds 0.3% On Quarter In Q1
- Author: Leroy Wright Jun 07, 2017,
Jun 07, 2017, 7:11
Australia's economy rose by 0.3 percent in the March quarter based on the official figures released on Wednesday.
Australia has now broken the world record for the Longest Run of Consecutive Quarters of Economic Growth - you bloody beauty!
The economy last contracted by 0.5 per cent in the September quarter, but expanded by 1.1 per cent in the December quarter.
Treasurer Scott Morrison said the result "demonstrates the continued resilience of the Australian economy and demonstrates also the need to continue to make the right choices to create more and better jobs".
"As a result of the anticipated negative impact of temporary weather-related factors, Treasury prudently revised down the budget forecast for real GDP growth in 2016-17", he said.
The Australian dollar rallied by a quarter of a United States cent to 75.27 cents just after the data was released, as some analysts had predicted a negative first-quarter reading.
The sharemarket was slightly weaker with the S&P/ASX 200 index down 0.1 per cent to 5664.2 points.
Seventeen of 20 industries tracked by the statistics bureau reported growth.
"This broad-based growth was tempered by falls in exports and dwelling investment".
Overall investment in housing was down 4.4 per cent. "They can't do that indefinitely, so we suspect that slow income growth will soon result in more modest consumption growth".
Underpinning the March quarter result were strong rises in export values of both rural and non-rural goods, with large rises reported in cereals, meat, iron ore and coal.
Overall exports lopped 0.4 per cent off GDP.
Even as Australia avoided a contraction, economists said underlying weaknesses still persist in the resource rich nation. "That's a tremendous national achievement, but it's not one we can take for granted".
"There's a bad story on the compensation of employees with only some wage growth in the public sectors in the ACT and Victoria".