Economic growth again confounds economists
The Australian economy grew 0.6% in the June Quarter, confirming that the nation has avoided a recession.
The growth rate was three times stronger than that predicted by economists – who have, yet again, got it spectacularly wrong by under-estimating the Australian economy. The concensus forecast among economists was 0.2% growth in the June Quarter.
The June Quarter performance follows 0.4% growth in the March Quarter.
Federal Treasurer Wayne Swan says the national accounts show that Australia has been the best-performing advanced economy in the world. The economy remains weak but is very resilient, he says.
Consumer spending rose 0.8% in the June Quarter while exports improved 1%.
Stand by now while the national media works hard to find a negative slant to put on the nation’s strong economic performance. This, predictably, will be speculation that it will lead to interest rate rises.
