SKIP TO MAIN CONTENT

Australia registers fastest economic growth since 2012

Wednesday's figures are more upbeat than Treasury and the Reserve Bank forecasts would suggest.

economy
Source: Getty Images

2 min read

Published

Updated

By Mosiqi Acharya

Source: AAP



Skip to article content

The economy enjoyed its fastest pace of quarterly economic growth in four years.

That lifted the annual pace of growth to 3.1 per cent, the strongest in more than three years.

Prime Minister Malcolm Turnbull was obviously chuffed by the result, enforcing his election mantra of "jobs and growth".

"So far, so good," he told reporters in Brisbane.

He said the strong growth figures didn't happen by accident and requires a clear economic plan and strong economic leadership.

"We are seeing strong growth in jobs but we are seeing, however, signs that we cannot be complacent."

Exports made a solid one percentage point contribution to growth, while household consumption provided more modest support of 0.4 percentage points.

This helped to offset weak business investment.

Treasurer Scott Morrison conceded there is fragility in the March quarter national accounts numbers, which is why the government's economic plan is designed to address investment.

He said Australia also faces strong global headwinds.

"The fact we have achieved these results as an economy ... they happen through the investment and hard work of Australians around the country," the treasurer said in his joint media conference with the prime minister.

He said the transition in the economy from mining investment to broader-based growth is working, "but it cannot be taken for granted".

Shadow treasurer Chris Bowen said without the strong input from exports, the quarterly growth figure would have been flat.

"Beneath the headline figures, we know there is an economy struggling with falling demand and falling income growth," Mr Bowen told reporters in Sydney.

Wednesday's figures are more upbeat than Treasury and the Reserve Bank forecasts would suggest - both predicting growth of 2.5 per cent for this financial year that ends on June 30.


Follow SBS Hindi

Download our apps

Watch on SBS

SBS Hindi News

Watch it onDemand

Stream now