Following a disastrous first quarter in which the economy declined by 0.9 percent as floods and massive storms ravaged large parts of the country, Australia’s Gross Domestic Product Product (GDP) grew by 1.2 percent in the second quarter. Strong demand for Australia’s resources in the Asian markets boosted export sales and most observers feel this trend will continue.
As a result, consumer confidence is on the rise with retail sales for July gaining half a percent over June. This is the first increase in three months.
“The resilience of households was the stand-out factor,” said Brian Redican of Macquarie. “These are good numbers for the RBA and should quieten talk the economy is somehow falling apart.”
Source: BBC News
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