Post by Flash on Dec 6, 2007 21:26:43 GMT -5
Australian economy grows 4.3 per cent
A great credit to the economic management of the former Howard government. This is one of the highest growth rates among the mature economies. What will it be like in 12 month's time?
The economy grew by a seasonally adjusted 4.3 per cent over the year to September, keeping pressure on interest rates, analysts said today. Over the September quarter, gross domestic product (GDP) rose by 1.0 per cent, the Australian Bureau of Statistics said today. That compared with a downwardly revised rise of 0.7 per cent in the June quarter. The median market forecast was for a quarterly rise of 1.0 per cent and an annual growth rate of 4.8 per cent.
Household final consumption expenditure rose 1.2 per cent in the quarter and was up 4.5 per cent over the year to September, adjusted. Total investment in dwellings increased 1.4 per cent in the quarter, adjusted, to be up 4.8 per cent in the year to September. Domestic final demand grew 0.8 per cent in the quarter and was 5.5 per cent higher over the year, adjusted.
JPMorgan economist Jarrod Kerr said the Reserve Bank of Australia (RBA) was still likely to raise interest rates in February. "We're still growing at the pace that will be above potential which points to pressure in the pipeline," he said. "We think the RBA - while they left rates on hold today and there's uncertainty in the global outlook and the financial sector - we think they'll have to remain vigilant on inflation. We think their job's not done yet and there's another tightening in February."
The Reserve Bank today left the official cash rate unchanged at 6.75 per cent though it warned of rising inflation. Mr Kerr said economic growth was still growing despite capacity constraints. "Economic growth (annually) is at 4.3 per cent. That's a great number when you consistently grow at 3.25 to 3.5 per cent," he said. "We've had economic growth uninterrupted for 17 years. There's capacity constraints, food prices rising and petrol prices are also surging. The cost of wages are expected to increase. There's inflation coming through on all fronts."
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A great credit to the economic management of the former Howard government. This is one of the highest growth rates among the mature economies. What will it be like in 12 month's time?
The economy grew by a seasonally adjusted 4.3 per cent over the year to September, keeping pressure on interest rates, analysts said today. Over the September quarter, gross domestic product (GDP) rose by 1.0 per cent, the Australian Bureau of Statistics said today. That compared with a downwardly revised rise of 0.7 per cent in the June quarter. The median market forecast was for a quarterly rise of 1.0 per cent and an annual growth rate of 4.8 per cent.
Household final consumption expenditure rose 1.2 per cent in the quarter and was up 4.5 per cent over the year to September, adjusted. Total investment in dwellings increased 1.4 per cent in the quarter, adjusted, to be up 4.8 per cent in the year to September. Domestic final demand grew 0.8 per cent in the quarter and was 5.5 per cent higher over the year, adjusted.
JPMorgan economist Jarrod Kerr said the Reserve Bank of Australia (RBA) was still likely to raise interest rates in February. "We're still growing at the pace that will be above potential which points to pressure in the pipeline," he said. "We think the RBA - while they left rates on hold today and there's uncertainty in the global outlook and the financial sector - we think they'll have to remain vigilant on inflation. We think their job's not done yet and there's another tightening in February."
The Reserve Bank today left the official cash rate unchanged at 6.75 per cent though it warned of rising inflation. Mr Kerr said economic growth was still growing despite capacity constraints. "Economic growth (annually) is at 4.3 per cent. That's a great number when you consistently grow at 3.25 to 3.5 per cent," he said. "We've had economic growth uninterrupted for 17 years. There's capacity constraints, food prices rising and petrol prices are also surging. The cost of wages are expected to increase. There's inflation coming through on all fronts."
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