- Treasurer Scott Morrison
The Australian economy grew at a faster pace than economists predicted in the third quarter, led by the fastest gain in exports since 2000, and supporting the Reserve Bank of Australia decision to maintain rates on hold. Australia's gross domestic product rose 0.9% in the July-September period from the preceding quarter, when it rose a revised 0.3%. Economists, however, had predicted a 0.8% gain. Despite a slowdown in Australia's biggest trading partner, China, and falling commodity prices, exports increased, providing the economy with a boost. Net exports added 1.5 percentage points to growth over the reported period, after subtracting 0.6 percentage points from growth in the second quarter. In addition to that, final household consumption was also one of the biggest contributors to growth last quarter, climbing 0.7%. Measured on an annual basis, the Australian economy expanded 2.5% in the three months through September from a year ago, compared with 1.9% in the previous quarter and overshooting forecasts for a 2.4% growth.
Reserve Bank of Australia Governor Glenn Stevens described the growth figures as "not a bad outcome" as they were slightly above what the RBA had estimated. The outlook is for continued moderate growth.
© Dukascopy Bank SA