Australian Economy Stays Solid

Based on the latest ABS figures show that GDP, in generally adjusted volume terms, grew 1.0% in the September quarter 2011, after a revised increase of 1.4% in the June quarter. The GDP growth indicates 2.7% increase in the terms of trade and the Real gross domestic income grew 1.6% for the quarter. The Australian Bureau of statistics reported that on an annual measure, the economy expanded by 2.5%.

According to Treasurer Wayne Swan, “Slower growth would mean less government revenue but the government remained determined to bring the budget back to surplus in 2012/2013 as planned.” He also expects the economy will still be growing at trend in the current financial year when he hands down Treasury’s latest economic forecasts with the mid-year budget review. Stable monetary exchange and the cuts rates last November and also having cut rates next year will be sign that economy still solid and grow better. Most sectors are struggling or going backwards by mining investment remains the backbone of growth. Among the states, WA led on the way of State final demand and the final demanded jumped by 8.4%, contributing 1.1% points of the 2.1% increase in National final demand. Investors has nothing to worry about what they are invested because next year and the following years, the economy will become stronger and will become more stable economy.