Australian economy picks up pace on exports
December 2, 2015, 3:56 pm

Australia`s economy grew more than expected, picking up pace in the second half of the year as exports rose.

The economy grew 2.5% in the three months to September from a year ago, compared with 1.9% in the previous quarter and above forecasts of 2.4%.

It grew 0.9% from the previous quarter, also beating expectations of 0.8%.

Despite a slowdown in its biggest trading partner, China, and falling commodity prices, exports rose, giving the economy a boost.

Exports jumped 4.6% in the quarter, adding one percentage point to gross domestic product (GDP) growth.

This was during a period when the Australian dollar dropped 9% on record low interest rates in the country as the central bank tried to boost economic activity.

The Australian dollar surged to its highest level in almost seven weeks to $0.7345 after the growth figures were released.

Record low rates

Just a day earlier, the Reserve Bank of Australia had left its key interest rate unchanged at a record low of 2%, and also provided an upbeat view of the economy.

But Paul Dales, chief Australia economist at research firm Capital Economics said that the strong performance in exports is unlikely to be sustained.

"With overseas demand soft, we are not convinced that net trade can completely fill the hole [from declining mining investment ahead]," he said in a note.

"This is the main reason why we doubt that economic growth will accelerate significantly next year."

Australia`s economy has been seeing moderate growth in recent years after investment in the mining sector - which had been a key driver for growth over a decade - peaked.

Resource companies in the country are in the midst of scaling back operations and cutting production costs to cope with slumping commodity prices.

In reaction to the growth figures, Sydney`s benchmark S&P/ASX 200 closed down 0.2% to 5,258.30 points on Wednesday.


m1.png m2.png m3.png m4.png m5.png
f1.png f2.png f3.png f4.png f5.png
+ =
Exchange Rates
EUR/USD 1.0664
EUR/BRL 3.4367
EUR/AUD 1.4128
EUR/TRY 4.0371


Jan19      10:18
  1. Humidity 47%
  2. Downwind
  3. Winds 0 kph
Latest Videos
VIDEO: The Biology of Bliss and the Human OS - Jamie Wheal
Terror and Tourism: Changing the Travel Landscape
Earth In 2050 - HD Documentary 2015
The drive for gender equality in corporate Japan
Plane touches down then aborts during storm (VIDEO)
The Fermi Paradox II — Solutions and Ideas – Where Are All The Aliens (VIDEO)
Latest Photos
best cities for small businesses
Best Jobs in America (PHOTOS)
Inside the coolest private jets (PHOTOS)
The best hotel club floors in the world
Winning Images from the 2015 National Geographic Traveler Photo Contest
PHOTOS: Raging Wildfires Prompt Major Evacuation