SYDNEY: Slowing momentum in China curbed Australia's economic growth to 0.5 per
cent in the three months to September and 3.1 per cent from a year earlier,
data showed Wednesday.
The Australian Bureau of
Statistics (ABS) said gross domestic product grew a seasonally adjusted 0.5 per
cent in the quarter, in line with expectations, driven by the mining and
manufacturing sectors.
That compared with growth of 0.6
per cent in the three months to June and year-on-year growth of 3.7 per cent
last quarter, lending weight to the central bank's decision to cut interest
rates on Tuesday to stimulate the economy.
Treasurer Wayne Swan hailed the
"solid" data, saying it was more evidence of "the ongoing
resilience of the Australian economy in the face of a difficult and volatile
global environment".
Mining contributed 0.4 per cent
to quarterly GDP growth, despite a plunge in commodity prices due to cooling in
China's economy that saw a 4.0 drop in Australia's terms of trade -- the value
of its exports against its imports.
Spot prices for iron ore and coal
waned by 10-20 per cent in US dollar terms in the quarter, with the terms of
trade sagging 13.7 per cent in the year to September.
The ABS said the value of the
mining sector expanded 4.5 per cent in the quarter, driven by new oil and gas
production coming online. Most other sectors were sluggish.
The Reserve Bank of Australia
slashed the official interest rate by 25 basis points to 3.0 per cent this week
-- their equal lowest since RBA independence in the early 1990s and a level not
seen since the height of the 2007 global crisis.
RBA governor Glenn Stevens said mining
investment would soon reach its peak, and other areas of the economy would need
to pick up the slack as Australia looks to transition away from a
resources-dominated economy.
Analysts have warned that further
rate cuts may be needed as the government seeks to rein in spending to meet a
targeted budget surplus in 2013, with the non-mining economy already looking
anaemic.
"This is a fairly sluggish
rate of growth, even with mining investment adding to growth, and before the
major fiscal cutbacks begin to come through," said Macquarie economist
Brian Redican.
Swan remained upbeat, saying
Australia was growing faster than other advanced economies and the expansion
was "reasonably broad-based" despite a strong Aussie dollar hurting
some industries and consumer confidence remaining muted.
He conceded that the commodities
slowdown had "weighed on some investment decisions", with a number of
major miners shelving or delaying projects amid warnings from the central bank
and others that the price boom had peaked.
But Swan said resources firms
were still committed to spend a record A$268 billion (US$280 billion) on
projects in coming years, with A$109 billion in capital expenditure slated in
the year to June 30, 2013, a 33 per cent increase on-year.
Though commodity prices and the
value of Australia's exports were expected to "decline gradually over the
medium term", Swan said they remained "elevated by historical
standards" and demand from Asia was expected to stay strong.
- AFP/ck
Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.
No comments:
Post a Comment