The Australian Bureau of Statistics (ABS) released the March 2017 quarter Expenditure and Product figures, showing that the Australian economy had grown by a 0.3 per cent for that quarter.
However, the annual pace of growth (March 2016 – March 2017) was only 1.7 per cent, which is the smallest annual growth since 2011.
In a press conference held yesterday, Treasurer Scott Morrison indicated that “adverse weather conditions during the March quarter” were to blame.
“I’m advised particularly on iron ore exports in the west. Exports declined by 1.6 per cent in the quarter, detracting 0.4 percentage points from GDP growth,” said Scott Morrison.
He went on to state that “the results today demonstrate the continued resilience of the Australian economy.”
“17 of the 20 industry sectors in the economy grew in the March quarter. The results also demonstrate the need to continue to make the right choices, to support more and better-paid jobs, through economic policies that encourage investment, that increase earnings, and responsibly manage the nation’s finances,” said Scott Morrison.
Australia has had a record of almost 26 years of headline growth, however, a cooling housing market, low wage growth paired with increasing CPI rates could see things take a turn soon.
Investment in total dwellings fell 4.4 per cent in the quarter. The Treasurer was quick to point out that “the level of investment remains high by historical standards and there remains a very strong pipeline of dwelling construction.”
“Building more houses remains, as ever, an important national task to improve housing affordability,” said Scott Morrison.