Australia the only developed nation in the world to post 22 consecutive years of economic growth; Longest economic expansion in Australian history, with the last recession having ended in 1991
Tweet Topic Started: 6 Sep 2012, 12:56 AM (2,783 Views)
By Jason Cadden, AAP Updated September 5, 2012, 2:20 pm
Australia s economy grew by 0.6 per cent in the three months to June, the latest ABS figures show.
Australia has recorded its 21st consecutive year of economic growth, the only developed nation in the world that can make that boast.
CommSec chief economist Craig James said it is the longest economic expansion in Australia's history, with the last recession having ended in 1991.
"While the record-breaking performance is of little practical benefit for many sections of the economy, it does provide a boost to consumer and business confidence," he said.
"We expect another year when economic growth is more likely to be in line with longer-term averages or slightly above, rather than something approaching the below-average outcomes from 2009-2011."
Figures released by the Australian Bureau of Statistics on Tuesday showed that June quarter gross domestic product (GDP) rose by 0.6 per cent and 3.7 per cent for the 12 months to June.
The quarterly figure was below the frenetic 1.4 per cent growth recorded for the first three months of 2012, but it is still considered a solid performance.
Mr James said the highest contribution to economic growth came from exports, followed by household spending and government consumption.
He expects growth to stay solid for the 2011-12 financial year, with an annual rate of about 3.5 per cent.
"Business investment in resource sectors should again be the mainstay of growth, but dwelling construction is expected to lift from depressed levels and household spending should continue to grow."
Treasurer Wayne Swan hailed the 21 years of growth as a stunning result.
Australia's 21 years of growth was "like winning 21 premierships in a row and winning the last four very, very comfortably", he told reporters.
Australia, driven by the biggest resource-investment expansion since the 19th century, is poised to overtake debt-laden Spain as the world's 12th largest economy, measured by gross domestic product.
Australia's $US1.379 trillion economy will probably supplant Spain's $US1.386 trillion GDP this quarter, data compiled by Bloomberg from the national statistics agencies of both countries show. The International Monetary Fund projected in January that Australia's economy would be $US3 billion smaller than Spain's by the end of this year.
“This is a nice microcosm of the structural shifts in the global economy away from the old developed core to the emerging and peripheral part of the global economy, in Asia particularly,” said Richard Yetsenga, head of global markets research at Australia & New Zealand Banking Group.
While the Iberian nation struggles to extricate itself from a recession, government data yesterday showed Australia's economy expanded 3.7 per cent in the three months to June 30 from a year earlier, marking 21 consecutive years without a recession.
SO FAR, so good. The national accounts depict an economy with wages soaring, households buying, miners investing at incredible rates - and even governments spending up.
That is why GDP grew a surprising 3.7 per cent in the 12 months to June - despite weak employment growth and all the other things we know have gone wrong. The figures show many areas are in recession - manufacturing, housing investment, discretionary spending - and Tasmania.
But those weaknesses are outweighed by the strength - mining investment. In the past year, more than half our growth in spending went into developing new mines. Mining investment grew 72 per cent. The rest of the economy grew 2 to 3 per cent.
These figures are the view in the rear vision mirror, and mostly they tell us what we already knew. The big surprise is wage growth. The Bureau of Statistics estimates the average employee's wage jumped 5.6 per cent in the year to June.
The figures can't tell us what we most want to know: what lies ahead. Most of the forces that generated growth in 2011-12 will weaken, or reverse, in 2012-13. Europe's problems could lead to a global crisis in coming months. The mining boom is not over, but it is slowing. And federal and state governments will switch from stimulus to contraction.
The Reserve Bank has signalled it is worried about what lies ahead. A European crisis seems inevitable, but who knows how severe it will be for us?
In 2008, our economy was braking hard when the crisis hit. This time part of it is running hot. But governments need to leave all options open. If the crunch comes, it is better to have budgets in deficit than the economy in recession.
This is quite an achievement. I am happy to be a part of it. It does also mean that there are adults who have never experienced anything but good times. How will they respond to bad times when they do come?
This is quite an achievement. I am happy to be a part of it. It does also mean that there are adults who have never experienced anything but good times. How will they respond to bad times when they do come?
Shock and disbelief?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy
Must be all the positive economic news.