Australia's Economic Growth Remains Solid in Q2

The gross domestic product in Australia was up a seasonally adjusted 0.6 percent in the second quarter of 2012. On a yearly basis, GDP expanded 3.7 percent, slowing from 4.3 percent in the previous three months.

In seasonally adjusted terms, the increase this quarter was driven by household final consumption expenditure (adding 0.3 percentage points), total public gross fixed capital formation (adding 0.2 percentage points) and net exports (adding 0.3 percentage points).

Pushing growth up, household consumption and spending on new vehicles were up almost 10 percent through the second quarter and 23 percent for the year. Nonetheless, the terms of trade fell by 0.6% in the quarter and 7.1% for the year, a consequence of dipping export prices as iron ore becomes cheaper. For this reason, the likelihood of a continued fall is very much a possibility.

Australia, Bank of Canada
9/5/2012 4:28:21 PM