01 December 2010

Australia's Economy Growth Lower Than Expected

Australia’s economy grew by just 0.2 percent in the September quarter, the Australian Bureau of Statistics announced yesterday.

The country’s gross domestic product (GDP) was measured at 2.7 percent, much lower than the 3.4 percent rise expected by market consensus. The result was also down compared to the 1.1 percent rise of the June quarter.
The Australian dollar immediately fell from 96.08 US cents to 95.65 following the release of the figures at 11.30am (AEDT) on Wednesday, although later regained ground.

The share market also closed flat with a mere 0.05 percent increase in the benchmark SP/ASX200 index and a 0.01 percent increase in the broader All Ordinaries index.
Despite a muted response from the markets, Treasurer Wayne Swan insisted that the GDP figures showed proof of a resilient economy.
'Today's GDP figures are another solid result for our economy in the context of a world economy which is fragile,' he told Canberra reporters.
'There are bumps in the road for our economy but Australia's fundamentals and growth prospects remain strong.' He added, 'we are determined to continue our plans to build a stronger, broader, more competitive economy.’

The Treasurer pointed to several positives in the September quarter including a 0.6 percent increase in household consumption and the creation of 105,000 full time jobs.

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