New Figures Confirm Australia’s Continued Growth

March 5, 2010 Taxation in Australia

Financial crisis will hurt jobs, Swan warnsThe new National Account report, released by the Australian Government on March 3rd, shows that the country has continued its economic growth throughout the whole of the 2009 year, despite the contractions faced by advanced economies worldwide.

According to the December quarter figures, Australia’s GDP grew by 0.9 percent, bringing the yearly growth total to 2.7 percent. Comparatively, the Australian Treasury estimates claim that the world’s advanced economies as a group contracted by approximately 3.2 percent.

In a statement accompanying the release of the figures Wayne Swann, Treasurer of Australia, said that infrastructure spending, tax incentives and several other fiscal stimulus measures introduced by the Government jointly spurned growth by 0.2 percent for the December quarter. The statement went on to say that additionally to the Government’s fiscal intervention, there is evidence that the economic environment is becoming increasingly self-sustaining and stimulus measures will no longer be needed in the foreseeable future.

The December quarter’s GDP growth has been attributed to a number of positive factors, including a 0.7 percent rise in household spending; new business investment rising by 4.7 percent for the quarter; equipment investment increasing by 11 percent; public investment spending rising by 10 percent over the quarter; and investment by state and local governments growing by 13 percent. Additionally, export volumes also grew by 1.7 percent during the quarter, indicating an improvement in international economic cooperation.

The Treasurer closed his comments on the latest National Accounts by saying that the Australian economy has proved to be highly resilient over 2009, and the figures indicate that 2010 will see a broadening in the economic increases of the nation.

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