Economy

Jun 4, 2014

Strong GDP result delivers golden business conditions

The March quarter GDP result has delivered some of the best business conditions for years, and shows the extent to which Joe Hockey deliberately underplayed growth ins his economic forecasts, Bernard Keane and Glenn Dyer write.

The economy performed strongly in the March quarter and presented business with the best conditions for years, with strong economic growth, higher profits, higher labour productivity and lower real wages.

The Australian Bureau of Statistics this morning revealed the economy grew at a seasonally adjusted 1.1% in the three months to March, taking 12-month growth to 3.5%, a little over trend and far beyond both Treasurer Joe Hockey’s December Mid-Year Economic and Fiscal Outlook prediction of 2.5% for 2013-14 and 2.75% in the budget just weeks ago. It will now take a spectacular budget-induced crash in the June quarter to meet Hockey’s deliberately gloomy forecasts. But the results should flow through to a stronger budget bottom line for the Treasurer, despite the continuing fall in terms of trade.

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3 comments

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3 thoughts on “Strong GDP result delivers golden business conditions

  1. Matt Hardin

    [ far beyond both Treasurer Joe Hockey’s December Mid-Year Economic and Fiscal Outlook prediction of 2.5% for 2013-14 and 2.75% in the budget just weeks ago. It will now take a spectacular budget-induced crash in the June quarter to meet Hockey’s deliberately gloomy forecasts.]

    Thanks for this Crikey! Just watch the Libs crow when the growth turns out higher than predicted and the deficit less than expected. I can feel a post hoc ergo procter hoc argument coming on – eagerly lapped up by a lazy media.

  2. Recalcitrant.Rick

    Give them time! A government induced recession is still not out of their reach, but it will have to happen soon, otherwise it will be hard to pin it on Labor!

  3. Itsarort

    Now that Hockey’s forward estimates of 2.5% have been exposed as nothing but malfeasance, will anyone challenge the Government’s budget as nothing but philosophically driven right-wing Republican extremism?

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