Australia records 0.9% growth in economy in September quarter
The Australian Bureau of Statistics data released on Wednesday indicated a hike of 0.9 per cent in Australian economy in the third quarter of 2015.
The increase in the mining activity has enhanced the rate of growth of economy, which is more than the last quarter. The export of mining commodities has built up 4.6 per cent of the total revenue, according to the ABS report.
The gross domestic product increased 2.5 per cent in the past three months until the end of the third quarter, which was more than the record exhibited by the last year’s report during the same period. Australia, however, still lagged behind so far as domestic economy was concerned. The main reason behind this was the gross fixed capital formation, which remained consistent due to the declining investment in the mining sector.
“There are positive signs of a strengthening economy and signs that our economy is heading in the right direction,” AFP quoted Treasurer Scott Morrison as saying. The treasurer said that the hiking mining activities were gradually supporting new economic conditions.
“The transition is underway in our economy,” he added. “The next phase of Australia’s growth transition will be for businesses in the non-resources sector of the economy to increase their investment.”
The previous growth in economy saw disturbances, which prompted introduction of stricter monetary rules, increase in inflation and eventual bust, RBA Governor Glenn Stevens stated ahead of the release of GDP figures in Perth. Though the Australian economy showed modest growth in recent months because of China’s slowing demand for Australian exports, the latest GDP release still suggested certain improvements.
“Let’s not overplay the significance, but the economy is growing,” Stevens stated just after the GDP growth figures were released. “The outlook for continued moderate growth – you would still say that’s the outlook based on this incremental bit of additional information.”
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