Australia’s economy grew at its fastest pace in three years in the second quarter as demand from China and elsewhere in Asia boosted exports of iron ore and other commodities.
The figures released yesterday show the economy expanded 1.2 percent in the April-June quarter from the previous quarter, accelerating from revised growth of 0.7 percent in the first quarter.
Australia weathered the global economic downturn better than most developed countries, helped by a A$42 billion (US$38 billion) stimulus package and China’s ravenous demand for raw materials.
PHOTO: REUTERS
Bob Cunneen, senior economist with AMP Capital Investors, said the numbers were surprisingly robust.
“This sort of GDP result is exceptional and won’t be the rule, but it also underscores how well Australia is doing with the China growth story,” he said.
Australia’s S&P/ASX 200 stock index jumped 1.9 percent to 4,488.20, outpacing gains in Asian markets.
Australian Treasurer Wayne Swan hailed the growth as “an outstanding set of figures.”
“It’s a strong outcome when you consider the shaky conditions that exist in countries like the United States and in Europe,” Swan told reporters. “Finance ministers elsewhere and prime ministers elsewhere would kill for a set of outcomes such as these.”
The Australian Bureau of Statistics figures also showed that GDP — the value of all the goods and services produced by the economy — rose 3.3 percent for the year through June.
The statistics bureau said second quarter growth was driven by a 5.6 percent increase in exports and a 1.6 percent increase in household expenditures. Construction, mining and professional and technical services also increased production in the second quarter.
Meanwhile, Singapore’s economy will likely expand at a record pace this year as a surge in demand for the city-state’s exports fuels manufacturing, according to a central bank survey of analysts.
Singapore’s GDP will likely grow 14.9 percent this year, according to the median forecast of 20 economists in the quarterly survey, the Monetary Authority of Singapore said yesterday.
In the previous survey in June, analysts had expected the economy would grow 9 percent this year.
Singapore’s economy — which relies on trade, finance and tourism — will likely be led this year by a 29 percent expansion of the manufacturing sector as non-oil exports soar 20 percent, according to the analysts.
The government boosted its growth forecast for this year in July to a range of 13 percent to 15 percent after the economy expanded 18 percent in the first half from a year earlier.
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