The export boom has led to economic growth in Australia
Australia's GDP rose 0.8 per cent in the second quarter from a year earlier, benefiting from strong export growth. This is the 26 consecutive year that Australia's economy has grown.
Weng donghui
Australia's second-quarter GDP rose 0.8 per cent in the second quarter from a year earlier, according to new statistics from the Australian national bureau of statistics. This is the 26 consecutive year that Australia's economy has grown.
Statistics show that Australian exports rose 2.7% in the second quarter and imports rose by 1.2%, although the ratio of exports to imports fell by 6%, but the number of exports rose sharply. The analysis suggests that net exports contribute 0.3% of Australia's GDP. Commodity status is particularly important in Australian exports. Commodity prices have been boosted recently as the global economic recovery and demand in Asia have picked up, with copper recently hitting a three-year high. These benefits have improved Australia's export prospects, providing support for Australia's economic growth. Another factor driving Australia's growth is infrastructure investment. In recent years, Australian federal and state governments have increased investment in roads, railways and other areas. In may this year, the Australian government announced in the next 10 years will be a $75 billion investment plan for major infrastructure projects, including inland railway, and the possibility to buy snow mountain hydropower project plan more rights, etc., to say the massive infrastructure investment will open the Australian economy next growth stage. According to westpac, infrastructure investment will contribute 0.5 per cent of Australia's GDP.
While Australia's economy is growing, there are uncertainties. First, the recent strength of the Australian dollar could affect export competitiveness. The Australian dollar has risen more than 10 percent against the dollar so far this year, after the dollar breached 0.8 for the Australian dollar, which is not good for exports. Second, personal income growth in Australia has been slower, in particular limited wage growth, which has dampened consumption growth. Over the past year, Australia's per capita income has grown by just 0.1%, according to the data, with inflation of 1.9% in the same period leading to a drop in household spending. Meanwhile, Australia's Labour productivity fell 0.3 per cent in the second quarter of this year, down from a forecast of about 0.5 per cent in the past year. In addition, Australian property prices have increased rapidly in recent years, and the increase in Sydney, Melbourne and other places has been even more dramatic. Although the Australian government has introduced a series of measures to stabilize housing prices, the ratio of ordinary households is still high, which is a hidden danger for the Australian economy.
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