Australia's economy expands 0.9% in September quarter
Australia’s economy is on track for healthy growth this year, new figures showed Wednesday, with a bounce in exports helping accelerate its shift from an unprecedented resources boom. The upbeat news follows tepid growth in recent months, as Australia’s resource-driven economy has been hurt by softening Chinese demand for its commodities. Growth in the September quarter was slightly above analyst expectations at 0.9 percent for an annual rate of 2.5 percent, the Australian Bureau of Statistics said. This was was well above the sluggish 0.3 percent recorded the previous quarter, and Treasurer Scott Morrison hailed it as progress away from the mining boom to broader-based growth. “There are positive signs of a strengthening economy and signs that our economy is heading in the right direction,” he said. “The transition is underway in our economy. The next phase of Australia’s growth transition will be for businesses in the non-resources sector of the economy to increase their investment.” The data showed the largest contribution to economic growth in the three months was from exports of goods and services, concentrated in mining commodities — the strongest growth in 15 years. But Morrison said household consumption was also up as was housing construction and all these factors had more than offset a fall in business investment. Jobs growth was strong and unemployment — now at 5.9 percent — falling, he added, while moving forward Australian businesses would benefit from recent free trade deals with China, Japan and South Korea. Analysts had expected a 0.8 percent rise for the quarter and 2.4 percent in the year to September and the share market initially spiked on the news before closing down slightly. The Australian dollar, which has dropped from around US 85 cents over the past year, was trading at about 73.07 US cents. The latest numbers come after the Reserve Bank of Australia on Tuesday left interest rates on hold at the historic low of 2.0 percent for a seventh month in a row. “Let’s not overplay the significance, but the economy is growing,” governor Glenn Stevens said Wednesday after the growth figures were released.