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Discussion Starter · #1 ·
Australian economy is powering ahead.
Looks like the NSW recovery is on track. Second quarter of very strong growth.
March quarterly growth of 1.6% - with the prior quarter also upwardly revised to 1.1% - to bring the annual rate up to 3.8% .

http://www.ausstats.abs.gov.au/ausstats/subscriber.nsf/0/6A785910D3B4100BCA2572F10017BBD5/$File/52060_mar%202007.pdf

Economic Growth
Dec 0 7 – March 07 Quarter

Quarterly
NSW: 1.2%
VIC: 0.6%
QLD: 2.4%
SA: 1.1%
WA: 3.5%

YoY
NSW: 3.2%
VIC: 3.3%
QLD: 6.1%
SA: 3.3%
WA: 6.5%
 

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Discussion Starter · #2 ·
Australian Economy Grows Fastest Pace in Three Years (Update2)
By Hans van Leeuwen and Gemma Daley

http://www.bloomberg.com/apps/news?pid=20601087&sid=ajJfUYOQe8Rg&refer=home

June 6 (Bloomberg) -- Australia's economy grew at the fastest pace in more than three years, pushing the nation's currency to the highest since 1989 on expectations the central bank will raise interest rates to ward off inflation.
Gross domestic product rose 1.6 percent in the three months ended March 31 from the fourth quarter, the Bureau of Statistics said in Sydney today. The median estimate in a Bloomberg survey of 26 economists yesterday was for a 1.2 percent increase.
The growth was driven by consumer spending and business investment as mining companies in the world's largest exporter of iron ore and coal expand to meet surging Asian demand, sending the jobless rate to a 32-year low. Rising demand may push the inflation rate back above the central bank's limit.
Stoking the economy's expansion, business investment contributed 1.2 percentage points to growth in the first quarter, today's report showed. Consumer spending contributed 0.9 percentage point. By contrast, net exports subtracted 0.2 percentage point as imports climbed.

Construction companies, which employ one-tenth of the nation's workforce, have led the biggest hiring surge in almost 18 years, sending the jobless rate to 4.4 percent in April, the lowest since November 1974.

The buoyant labor market pushed consumer confidence to a record in May, and retail sales grew at the fastest pace in more than three years in the first quarter.

The consumer spending surge hasn't yet triggered an inflation pickup. The rate was 2.4 percent in the first quarter, falling within the central bank's target for the first time in a year after the bank raised borrowing costs in May, August and November last year.
 

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Mining is powering the economy primarily. This is the main eason the economy is so good at the moment, raw minerals cost a fortune!
 

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Awaiting the furious banging of Auslankan's keyboard any moment now :lol:
 

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this is great news, however, australia should really start investing excess money into new industries, so that when mineral prices fall or we run out (vey long time), we will have something else to keep the economy strong instead of it just slugging off.

and these results pretty remarkable being the fact that australia has been in drought for the entire millenium. what are some suggestions about how much the drought affected gdp growth? was it something like 0.5%? still has an impact nonetheless

cheers
 

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Australian economy is powering ahead.
Looks like the NSW recovery is on track. Second quarter of very strong growth.
Will be interesting to see if this bears out in the budget bottom line. Rumour mill says rather large surplus, but I find that hard to believe, especially as the big squeeze is still on in government departments...
 

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Will be interesting to see if this bears out in the budget bottom line. Rumour mill says rather large surplus, but I find that hard to believe, especially as the big squeeze is still on in government departments...
A rumour of cuts to the Arts was talked about over the weekend. But without input from the minister it seemed like a softening up exercise for a smaller increase in arts spending in the up coming budget.
It appears to be tight, but in all the political spin its hard to tell.
 

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It appears that the arts were just ahead on funding as a whole.
The NSW state budget confirms the trend identified by Zach.

A giant awakens to spend up bigBy Imre Salusinszky
June 20, 2007
Article from: The Australian.

NSW, the sleeping giant of the national economy, is beginning to stir, with Sydney's housing market on the rebound from its mid-decade slump and solid growth in jobs and incomes fuelling consumer spending.
A surge in property-related taxes, along with stronger-than-expected returns on state superannuation investments, has poured an extra $2.3 billion into NSW Treasurer Michael Costa's coffers, helping him turn a projected $509 million deficit for 2006-07 into a $444 million surplus.

The news will put Peter Costello on the back foot as he ramps up his argument that the state Labor governments are poor economic managers - part of the Howard Government warning about "wall-to-wall" Labor governments if Kevin Rudd wins later this year.

But the Treasurer yesterday accused NSW of being the latest state government to run "a deficit in the current financial year, in the next financial year and right across the forward estimates".

"When you add up the state Labor governments, collectively the state Labor governments are budgeting for deficits right across the forward estimates," Mr Costello said.

"There is only one level of government that is running a surplus budget in Australia, and it is the Commonwealth Government. Let me make this point: we would not have been doing that if Labor had been successful in defeating all of the measures that we proposed which were necessary to do it."

Figures released with yesterday's state Budget show NSW, which accounts for about a third of the national economy, slowly gaining on the resource-rich states, with demand for goods and services predicted to grow by 3.5 per cent in 2007-08.

They reveal home loan approvals in the 12 months to April clawed back above $60 billion, after flatlining in 2004 and 2005, and that owner-occupiers were prepared to take up the slack as investors switched their savings to superannuation.

In addition to turning around the deficit, Mr Costa has been able to pay off an extra $960 million of rail-related debt. And in the Budget's only big surprise, he will return about $100 million a year to property investors in cuts to land tax.

Abolition of some of the "nuisance" taxes that were meant to be sacrificed in return for the GST, such as mortgage duty, has also been fast-tracked. Mr Costa is predicting surpluses averaging about $500 million over the next four years.

However, there is a potential black hole in the 2006-07 revenue estimates, with the Howard Government still considering a challenge to the $400 million NSW stamp duty Bill passed on to it by Macquarie Bank, which it indemnified against transaction costs resulting from the privatisation of Sydney airport in 2002.

"The fundamental strength and resilience of the NSW economy is undeniable," Mr Costa declared.

"The economy is expected to strengthen, with continued solid consumer spending, significant public sector investment and a moderate recovery in the housing sector. Housing construction is expected to contribute to overall growth for the first time in three years."

NSW Premier Morris Iemma added his voice to the good-news gospel, declaring yesterday a "red-letter day for NSW" showing "significant improvement and tremendous hope for the state's future".

The return of NSW to its traditional position as a spark-plug for national growth could turbo-charge an already booming economy and increase the likelihood of an interest rate rise this year.

However, Mr Costa denied his record infrastructure spend of almost $50 billion over the next four years would overheat the economy.

He challenged Mr Costello to match NSW's commitment to nation-building and relieving infrastructure bottlenecks.

"This infrastructure is for the long term," he said. "It's not speculative and it's not going to put pressure on the system ... We're not building millennium domes."

The Budget came under immediate fire from unions yesterday for threatening cuts to public sector jobs if labour cost increases could not be contained to 2.5 per cent.

Unions NSW secretary John Robertson predicted conflict ahead with the Government, saying it had to make up its mind about keeping promises made at the state election in March to improve services. "You can't keep the best services unless you pay the best wages," Mr Robertson said. "If you have skill shortages you have to look at what you're paying people."
 
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