Australia’s resource-blessed economy grew a moderate 0.5 percent last quarter thanks to a fresh burst of business investment, but lower export revenues, government cutbacks and a cresting mining boom mean tougher times may lie ahead.
The local dollar held firm after the Australian Bureau of statistics reported gross domestic product (GDP) rose 0.5 percent compared to the second quarter, when it grew 0.6 percent. That was pretty much in line with market forecasts.
The value of all goods and services produced was 3.1 percent higher than in the third quarter of last year at an inflation-adjusted A$369.5 billion ($386 billion).
That remained a faster pace of growth than almost any other developed nation, but analysts suspect a slowdown will be hard to avoid next year.
“Australian economic growth is expected to decelerate in 2013, as the pace of growth in business investment slows and the combined influences of cautious consumer spending and a fragile world economy take a firmer hold,” said Stephen Halmarick, as chairman of the association of Australian Business Economists.
They see the economy expanding by around 2.8 percent in 2013, though much uncertainty surrounds that forecast.
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