SYDNEY: Australia’s economy rebounded strongly in the December quarter, growing by 1.1 percent to dodge a technical recession on the back of buoyant exports and household spending, data showed Wednesday.
The stellar bounceback followed a shock contraction of 0.5 percent in the three months to September — the worst result in eight years.
The Australian Bureau of Statistics said the annual rate of growth was a faster-than-expected 2.4 percent, from 1.8 percent in the previous quarter.
Analysts had been expecting quarterly growth of 0.8 percent and an annual rate of 2.0 percent.
It meant Australia, which is transitioning from a mining investment boom to broader growth, avoided a technical recession — when the economy goes backwards for two quarters in a row.
The Australian dollar jumped to 76.56 US cents from 76.45 US cents prior to the numbers being released.
“Our growth continues to be above the OECD average and confirms the successful change that is taking place in our economy as we move from the largest resources investment boom in our history to broader-based growth,” said Treasurer Scott Morrison.
“While this growth result is welcome, we must continue to remember that our growth cannot be taken for granted and is not being experienced by all Australians in all parts of the country in the same way.”
Soaring commodity prices has seen a marked turnaround in Australia’s trade position in recent months with exports providing a key source of growth in the December quarter.
Net exports added 0.2 percentage points to gross domestic product, having detracted from the growth rate in the previous quarter.—APP
