Australia’s annual economic growth highest in 6 years
Latest figures reveal that Australia has achieved the strongest annual GDP growth in 6 years.
The June quarter result represents the fastest rate of growth since September 2012, during the height of the mining boom.
This exceptional result bodes well for the property markets, with economic growth accompanying Australia’s rapid population growth which is concentrated in our major capital cities, particularly Sydney and Melbourne,” said Ironfish Head of Property, William Mitchell.
This 6-year high growth rate was driven by a combination of factors, including accelerating demand for property which surged off the back of strong population growth, with Sydney and Melbourne adding over 100,000 people each respectively over the 2017 financial year.
Furthermore, the roll-out of multi-billion infrastructure projects across major capital cities was another key contributing factor, with thousands of jobs being created across diversified streams of industry including transport, health, and education.
ABS Chief Economist Bruce Hockman said: “Public investment remained at elevated levels reflecting continued work on infrastructure projects across the nation.”
The June quarter result exceeded the initial 3% the Reserve Bank of Australia (RBA) had forecast as well as outpacing Federal Government projections used in the recent budget.
“Australia’s economy is strong, the fundamentals are good, momentum is continuing and these are encouraging numbers,” Treasurer Josh Frydenberg said.