Economics
Australia Avoids Recession as Household Spending, Mining Boost Economy
- Gross domestic product gains 1.1% from previous quarter
- Household savings ratio falls to lowest level since 2008
Australia's GDP Rises 2.4 Percent on Year
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Australia’s economy expanded faster than forecast in the fourth quarter of 2016 as household savings fell to the lowest level in more than eight years as consumers opened their wallets.
Household spending accounts for more than half of Australia’s economy, and resurgent consumption teamed with government investment supported last quarter’s expansion. Coal and iron ore prices continued their rebound in the period, providing a windfall to national income and keeping the economy on track to meet the Reserve Bank of Australia’s target of 3 percent annual growth later this year.