Wednesday, 7 June 2017

Australia equals world economic record for longest time without a recession

Australia's economy grew 0.3% in the first three months of the year - confirming the country could be about to enjoy a world-record 26 years without a recession.
It currently matches the Netherlands' economic record of 103 quarters without recession which ended in 2008, but analysts have warned of uncertain times ahead as growth slows.

Figures released by the Australian Bureau of Statistics (ABS) showed the economy grew by 1.4% over the 12 months to March 2017.

However, while the annual rate was above forecasts, it was well down from 2.4% in the previous quarter, and the slowest since 2009.

Strong growth was recorded in service industries such as finance and insurance, wholesale trade and healthcare, but the manufacturing sector decreased for the tenth time in 11 quarters.

ABS chief economist Bruce Hockman said the GDP growth was tempered by falls in exports and housing investment.
"In the context of the past few years, it is still a fairly weak outcome," JP Morgan economist Tom Kennedy said of the latest figures.

"The real issue is that consumption is still pretty soft even though the saving rate fell... and (capital expenditure) was flat, still not doing anything.

"That's really important for the Australian economy so the domestic drivers of growth in Australia are still pretty underwhelming."

Australia last recorded two negative quarters of economic growth in March and June 1991.

It was one of the few wealthy countries to continue to grow through the 2008 financial crisis, largely because of natural resource demand from China, its biggest trading partner.

SKY       News.