GDP figures stronger than expected

Thursday, 7 Jun 2012

Growth of gross domestic product (GDP) was stronger than expected during the March quarter, which will no doubt have had a positive impact on the financial markets.

The National Accounts revealed that GDP increased by 1.3 per cent in the three-month period to be 4.3 per cent higher throughout the year.

"This is a remarkable outcome and reaffirms Australia's position as one of the strongest economies in the world, with the Australian economy growing faster than every single major advanced economy in the March quarter," commented treasurer Wayne Swan.

He suggested that these figures have come at a time when other major economies are struggling to grow at all, adding that Europe faces challenges that "cast a shadow over the global outlook".

The GDP figures came as a surprise to many economists, as some of them had predicted a significant slowdown in the Australian economy at the start of the year.

Chief economist of Deutsche Bank Adam Boyton was one of them, as he told the ABC that 0.7 per cent growth was likely during the first three months of 2012.

He warned that subsequent announcements may not be quite as promising, due to problems over more recent months.