Australian Economy Bounces Back In December Quarter 2016

Australian Economy Bounces Back In December Quarter 2016

Australian Bureau Of Statistics

Economy Grows 1.1 % In December Quarter 2016

Victor P Taffa

Australian economy recorded broad-based growth of 1.1 % in seasonally adjusted chain volume terms in the December quarter 2016.

This was a rebound from the previous quarter’s decline of 0.5 %, data from the Australian Bureau of Statistics (ABS) shows. Australia’s Gross Domestic Product (GDP) has now grown 2.4 % through the year.

 

Growth was recorded in 15 out of 20 industries. 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.

Household final consumption expenditure contributed 0.5 percentage points to GDP growth. Net exports contributed 0.2 percentage points. Public and private capital formation both contributed 0.3 percentage points this quarter after both detracted from GDP growth last quarter.

Terms of trade grew by 9.1 % in the December quarter due to strong price rises in Coal and Iron ore. The terms of trade is now 15.6 % higher than December quarter 2015. Nominal GDP grew by 3.0 % to be 6.1 % higher through the year. Real net national disposable income increased by 2.9 % for the quarter.

Strength in commodity prices helped drive a 16.5 % increase in Private non-financial corporation’s Gross operating surplus. Compensation of employees decreased 0.5 % for the quarter to be 1.5 % higher through the year.

This is in line with the subdued wage price index (1.9 % through the year) and employment growth (0.7 % through the year) previously published by the ABS.