GDP growth result smashes economists' forecast

GDP growth result smashes economists' forecast

by 0 comments

Steven Cross

The latest ABS figures reveal that gross domestic product (GDP) grew 1.3 per cent in the March quarter 2012 – significantly higher than the 0.6 per cent that many economists had predicted.

The industries that drove growth in the March quarter were mining, professional, scientific and technical services, and financial and insurance services – all of which contributed 0.2 per cent to growth.

Federal Treasurer Wayne Swan labelled it a ‘remarkable outcome’ and said it highlighted Australia’s solid economic policy during global economic turbulence.

“These figures come at time when many advanced economies are struggling to grow at all, with a number of economies already in recession and suffering crippling levels of unemployment,” he said.

“Europe faces profound economic challenges and this continues to cast a shadow over the global outlook.”

Chief economist for the Housing Institute of Australia (HIA), Andrew Harvey, said the findings were encouraging.

“The good news is that consumers do seem to be spending again, the aggregate GDP growth figure should help confidence and yesterday’s interest rate cut will help underpin residential building going forward,” Mr Harvey said.

“However, there’s no doubt the challenges posed by the multi-speed economy will continue to see non-resource sectors face significant headwinds.”

Steven Cross

The latest ABS figures reveal that gross domestic product (GDP) grew 1.3 per cent in the March quarter 2012 – significantly higher than the 0.6 per cent that many economists had predicted.

The industries that drove growth in the March quarter were mining, professional, scientific and technical services, and financial and insurance services – all of which contributed 0.2 per cent to growth.

Federal Treasurer Wayne Swan labelled it a ‘remarkable outcome’ and said it highlighted Australia’s solid economic policy during global economic turbulence.

“These figures come at time when many advanced economies are struggling to grow at all, with a number of economies already in recession and suffering crippling levels of unemployment,” he said.

“Europe faces profound economic challenges and this continues to cast a shadow over the global outlook.”

Chief economist for the Housing Institute of Australia (HIA), Andrew Harvey, said the findings were encouraging.

“The good news is that consumers do seem to be spending again, the aggregate GDP growth figure should help confidence and yesterday’s interest rate cut will help underpin residential building going forward,” Mr Harvey said.

“However, there’s no doubt the challenges posed by the multi-speed economy will continue to see non-resource sectors face significant headwinds.”

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent grew his database by 50% in five years

In this episode of Secrets of the Top 100 Agents, Robert Pignataro joins host Tim Neary to explain how he increased his personal database by...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Yes
No
Depends on the group
Do you have an industry update?