Economy - - Mar 01,2017
Australia's fourth-quarter GDP surged at an annual pace of 2.4 percent, surpassing the expected gain of 1.9 percent.
The country has been doing wonders in terms of maintaining a stable economic growth. As per the current statistics revealed by the Australian Bureau of Statistics on Wednesday, Australia managed to grab an annual GDP growth of 2.4 percent.
As per the earlier figures, in Q3 the nation’s economy had contracted. But this surprise rebound is a happy news and has also beaten the expected gain figures of 1.9 percent.
This current economic stabilization has been attributed majorly due to strong consumer spending as well as exports.
Australia's economy recovered sharply in the fourth quarter, extending the 25-year recession-free streak for the blessed nation. As per statistics, the fourth-quarter GDP rose 1.1 percent.
If Australia manages to hold onto such amazing figures for one more quarter, it would be successful in breaking Netherlands’ record set between 1982 and 2008.
Michael Blythe, chief economist at Commonwealth Bank said, the third quarter dip was simply a “pothole” and “not the end of the world”. He also added that the bounce in consumer spending came as a “big surprise”.
According to Shane Oliver of AMP Capital, "The outlook for the next year is reasonably bright". He added, there are signs of an increase in export volumes and recently the big rebound in “key commodity prices" has also contributed to the growth.
Mr Oliver also said growth might probably get back to 2.5%, or even 3% by the end of this year.
Moreover, there are estimates by the country's central bank which believes growth to pick up the pace to reach close to 3% for 2017 due to the significant recovery in commodity prices.