Australia has recorded a new increase in GDP in the second quarter, a result that allows the continent to end a quarter century of uninterrupted economic growth, writes AFP.
The Australian Bureau of Statistics said on Wednesday that the economy grew by 0.5% during April-June, which means in-digit annualized growth of 3.3%. Australia has never experienced a recession in 1991, which is one of the best performances recorded by the developed economies.
25 years of uninterrupted economic expansion
"It's official: Australia recorded 25 years of uninterrupted economic expansion," said Finance Minister Scott Morrison. "This growth is a tribute to all Australians who work or have created a company," he added.
In the first quarter, the country's economy grew by 1%, according to figures corrected, thanks to exports and household consumption. But the increase was more modest in the second quarter, due to less export performance, which wiped out 0.2 percent growth. The figure was offset by an increase in public investment by 15.5% from one quarter to another.
Paul Dales, economist at Capital Economics, welcomed a "good result" which should reduce pressure in favor of further reducing the interest intervention. Australian central bank (RBA) kept interest intervention Monday at a historical low of 1.50%, having reduced it twice in four months in a bid to sustain growth in non-mining sectors in a context of low inflation.
Faced with slow end of the golden age of mining, the Australian economy is now seeking new engines of growth.
