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Australia avoids recession with 1.1 percent GDP growth in Dec. quarter

Xinhua, March 1, 2017 Adjust font size:

The Australian economy has avoided falling into recession, after it was revealed the nation's gross domestic product (GDP) grew by 1.1 percent in the December quarter.

Following a gross domestic product (GDP) fall of 0.5 percent in the September quarter, the December rise - the best since 2012 - is enough ensure the Australian economy grew by an overall 2.4 percent in the year to December, the Australian Bureau of Statistics (ABS) said on Wednesday.

"Growth was recorded in 15 out of 20 industries," the release said. "Strongest growth was observed in mining, agriculture, forestry and fishing, and professional scientific and technical services. Each industry contributed 0.2 percentage points to GDP growth."

Treasurer Scott Morrison welcomed the results on Wednesday, saying economic growth had "rebounded strongly from the unexpected result in September".

"This is well above market expectations," he told the press. "Our growth continues to be above the Organization for Economic Co-operation and Development (OECD) average and confirms the successful change that is taking place in our economy as we move from the largest resources investment boom in history to broader based growth.

"What was particularly encouraging is that the growth was broad-based across all of the contributing sectors.

"Today's results are principally driven by a strong rebound in house consumption despite subdued wages growth. Australian households are continuing to express confidence in the economy."

Household consumption was the big driver of growth during the quarter, rising 0.5 percent on its own, while public capital formation contributed 0.3 percent to the December figures.

The September quarter's GDP fall of 0.5 percent was the second-worst in 25 years, and had the December figures taken a similar trajectory, the Australian economy would technically have been in recession. Endit