Mar 2, 2016

Consumers, services put Australia back into trend growth

A stronger-than-expected GDP result shows the economy headed back to trend growth despite global headwinds, Glenn Dyer and Bernard Keane write.

Higher spending by consumers and government and a rebound in activity in service sectors like tourism and education led the Australian economy to record its best growth in five years in 2015 — undermining claims from naysayers that the economy was sliding sideways. The fourth-quarter performance was demonstrably better than the US, UK, many eurozone economies, NZ, China, Japan and Canada

Growth for the year was a higher-than-forecast 3%, just under the 3.1% growth recorded in calendar 2011 and back to around trend, following a surprisingly strong performance in the December quarter and a big upgrade to the GDP result for the three months to September. The Australian Bureau of Statistics reported this morning that growth was a seasonally adjusted 0.6% in the fourth quarter, while growth in the September quarter was boosted from the already solid 0.9% to 1.1%.

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5 thoughts on “Consumers, services put Australia back into trend growth

  1. Norman Hanscombe

    Hopefully for the sake of Australian Citizens we may yet find the elites backing the sorts of expenditure cuts necessary for our future well-being.

  2. browser

    Who are the elites or are you just cropping on as usual?

  3. Norman Hanscombe

    After you’ve managed to get on top of the work you have arising from your efforts on other threads, anonymous browser, should you still need assistance on this issue, don’t hesitate to let the readers know.

  4. Peter Darco

    “It also means that the historically high level of government spending —…now looks incongruous.”

    I might wait for another quarter’s data before agreeing with that.

  5. AR

    How wonderful that we’ve found the economic equivalent of Perpetual Motion – taking in each others’ laundry.

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