Australia's economy grows 3.1 pct, fastest in more than 3 years

Australia's economy grew 3.1 percent over the past year to March 2016, official statistics released on Wednesday revealed.

Figures from the Australian Bureau of Statistics (ABS) show exports led economic growth, contributing a 1 percent increase in gross domestic product (GDP) for the March 2016 quarter, out of the 1.1 percent growth figure for the period.

"The economy is showing a transition from mining- based investment to production with new engineering construction falling for the 10th consecutive quarter (down 6.4 percent) and mining production growing (up 6.2 percent)," the ABS said in a statement on Wednesday.

"Mining related products significantly contributed to the 4.4 percent growth in exports."

They noted service-based industries were the other contributor to growth with finance, retail trade, accommodation, food services, arts and recreation all increasing.

"This is consistent with the steady growth in service to households," they said.

CommSec chief economist Craig James said the "gloomsters" will say the data is wrong.

"They will say that the growth is unsustainable or unbalanced or even both," James said.

"But it is hard to argue with a mountain of evidence. Exports, tourist arrivals, home prices, building approvals and car sales are at record highs."

He said the economy was not only growing at the fastest rate in three and a half years, it was growing faster than the "normal" rate -- the 10-year or 15-year average.

"And what is happening is what is supposed to be happening -- mining construction gave us extra production capacity, now that extra capacity is being put to work," James said.

"Other advanced economies can only wish for economic data as strong as that being published in Australia."

He noted the Australian economy had not experienced a recession for 25 years. Endit