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Economy growth at ’91 recession levels
The Australian economy has had its worst year of growth since the 1991 recession, national figures have shown.
Economy growth at ’91 recession levels
The Australian economy has had its worst year of growth since the 1991 recession, national figures have shown.
The latest figures from the Australian Bureau of Statistics (ABS) suggested that Australia’s growth rate is now worse than it was during the global financial crisis, where the economy grew by just 1.7 per cent over a 12-month period.
Current data showed that Australia has experienced growth over the last year of just 1.4 per cent.
Chief economist at the ABS, Bruce Hockman, cited strong mining performance as the main driver of growth for Australia in the quarter.
Mining, both gross and value-added, increased 3.4 per cent, with strong production of coal and liquefied natural gas leading profits to rise by 10.6 per cent.
This was driven by strong export growth and a continued rise in the terms of trade, according to the ABS.
Mining investment also rose by 2.4 per cent, with increases in investment in machinery and equipment.
“Net exports contributed 0.6 percentage points to growth this quarter, reflecting strong exports of mining commodities,” Mr Hockman also noted.
He added that “strength in mining-related activity was seen across a number of measures in the economy”.
On the domestic front, government spending was the main contributor to growth through delivery of services in disability, health and aged care.
Growth in the household sector remained subdued, with a 0.4 per cent growth in household expenditure.
In contrast, dwelling investment declined by 4.4 per cent for the quarter.
Compensation of employees grew 1.3 per cent for the quarter, due to rises in the number of wage and salary earners and wage rate.
The ABS noted that this growth was driven primarily by the healthcare and social assistance industry.
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