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Australia Economy Surges, Smashing Forecasts
SYDNEY - Australia's economy surged 1.2 percent in the June quarter and 3.3 percent over the year, smashing analyst forecasts, figures showed Wednesday, sending share prices and the local dollar higher.
The Australian Bureau of Statistics said growth was up sharply from a revised 0.7 percent in the March quarter, which was achieved despite a drop-off in government stimulus launched a year earlier to counter the global slowdown.
Economists had expected a 0.9 percent rise from the March quarter and 2.8 percent from a year earlier, while the annual figure compares with official forecasts of 3.0 percent growth over the year to next June.
The benchmark S&P/ASX 200 rose 1.6 percent to 4,473.1 on the news, after hitting a a 10-day high of 4,479.9, while the Australian dollar gained 0.25 percent to 89.70 US cents.
Australia's economy has been dubbed the "wonder from Down Under" after avoiding recession during the financial crisis and recovering strongly since, helped by roaring resources exports to Asian countries such as China.
Unemployment sits at 5.3 percent, against 9.5 percent in the United States and 10 percent in Europe, while figures released this week showed the lowest current account deficit in eight years and a record jump in company profits.
AFP/ Dow Jones
