Why Australia’s economy is surging at a faster rate than any other nation
The Australian economy has rebounded from the global financial crisis and is in a strong position to become one of the world’s most productive economies, according to new data released by the Australian Bureau of Statistics (ABS).
The ABS data showed the economy grew by 0.9 per cent in the 12 months to the end of September, which is up from a 0.7 per cent gain the previous year.
The economy grew at an annual rate of 0.4 per cent over the 12-month period, compared with an annual average of 0 of 0 over the previous 12 months.
It is the fastest rate of growth since the mid-2000s, when the global economic downturn was at its height.
The rate of expansion was also higher than Australia’s peers in the G7.
In terms of the size of the economy, Australia was the world number one economy for the first time in 2017, overtaking Japan to become the world economy with the biggest economy.
Australia was the first G7 nation to record a 0 per cent growth for the year, while China recorded the biggest increase, increasing by 0,7 per of the GDP.
Despite the strong growth, however, the Australian economy continues to struggle with a sluggish labour market and unemployment, with an estimated 8.7 million Australians unemployed at the end for the 12 month period.
The government has also taken measures to improve the economy with changes to the labour market, including: raising the minimum wage from $8.60 to $9.60, allowing some employees to earn up to $80,000 a year, and introducing a temporary tax on high-value goods and services, which will see the top marginal tax rate rise from 25 per cent to 35 per cent by the end.
The unemployment rate is at a historic low of 5.9 percent, but there are concerns that it may rise further if the economy continues on the path of the past six years.
Key points:The Australian economy is still recovering from the Global Financial CrisisThe ABS has announced the rate of economic growth will be 0.5 per cent, up from 0.6 per centThe ABS figures are important as it reflects the Australian Government’s commitment to economic growthThe rate is higher than the G8 and other G7 countriesThe figures are in line with a broader survey conducted by the ABS last year, which found the economy was growing by 0 of 1 per cent a year over the past year.
But that figure was down from a growth rate of 1.9 and 1.4 in the previous two years, as well as 1.7 and 1,8 per cent respectively in the same period in 2016.
The latest figures also confirm the Government’s pledge to boost the economy by up to 1 per to 2 per cent annually, based on the ABS forecasts.
In an interview with the ABC’s Insiders program on Friday, Treasurer Scott Morrison said the economy had been strong for several years, but he believed the economy would now grow faster than it had before the global crisis.
“The economic growth we’ve seen in recent years is much better than the growth that we had before this global crisis and that’s good news for the economy and good news that we’re still recovering well,” he said.
“But the growth in terms of productivity and the economy’s growing well, and so I’m hopeful that we can get that up to 2 to 3 per cent.”
The ABS said Australia’s economic performance has been driven by a combination of factors, including the strong Australian dollar and strong global growth.
But it warned that the current economic conditions are also linked to a number of factors that were not yet well understood.
“There’s a lot of different things that we don’t fully understand,” said Angus Stewart, director of the Australian Centre for Macroeconomics at the Australian National University.
“A lot of the work that’s going on right now to try to get a better understanding of what the drivers of the growth are, and how it fits into the broader macroeconomy is very much ongoing, but it’s really early days for us to really understand those.”