Australia economy is growing
07 October 2015 by News Desk
The economy of Australia is expanding, with an increase in jobs and exports and growth in resources, construction and tourism industries.
That’s the view of Philip Lowe, Deputy Governor of the Reserve Bank of Australia who, as the RBA holds interest rates at 2% for the fifth month, says a range of indicators show the Australian economy is both robust and growing.
Investment in mining was around $20 billion in the June quarter this year. The resources sector is growing. Over the past three years, resource exports are up by 20% and annual increases of around 9% are expected over the next couple of years. Production and export of liquefied natural gas, alone, is forecast to boost GDP growth by an average ¾ percentage point in 2016 and 2017.
The economy overall has been growing at between 2% and 2½% each year and is set to continue at a similar rate.
Most other recent indicators are also consistent with a moderate expansion in the Australian economy.
Measures of business conditions have improved and most are now above average.
The unemployment rate has been little changed over the past year and the demand for labour has increased, with a rise in employment relative to the working-age population. The housing cycle remains in an upswing and household consumption is growing.
In the housing construction sector investment has increased by 7% over the past year. The stronger housing market is also having some positive ripple effects on parts of the retail sector.
