The Australian economy grew 1.1 per cent in the fourth quarter of 2016, a stark turnaround from the 0.5 per cent contraction in the September quarter.
The December 2016 quarter national accounts, released yesterday by the Australian Bureau of Statistics, showed the Australian economy grew 1.1 per cent on a seasonally adjusted basis.
The strong figures were above market expectations and followed a 0.5 per cent contraction in GDP growth in the September 2016 quarter.
Australia has now recorded 101 quarters without two consecutive quarters of negative GDP growth (the definition of a technical recession, and last recorded in 1991).
Treasurer Scott Morrison welcomed the news, adding that Australia is "growing faster than every G7 economy".
"Our growth continues to be above the OECD average and confirms the successful change that is occurring in our economy as we move from the largest resources investment boom in our history to broader-based growth," Mr Morrison said.
"Growth was principally driven by a solid rebound in household consumption demonstrating that despite subdued wages growth, Australian households are continuing to express confidence in our economy, which is also reflected in the lower household savings ratio."
AIST appoints acting chief executive
Economists agree that the Reserve Bank is likely to remain in inflation fighting mode until December. ...