Australia’s land mass is slightly smaller than the continental USA at about 7.7 million square kilometres, but at about 23 million citizens, its population is roughly 1/15th of the size of the US population (and something less than a third of that of the UK). It is a country rich in mineral resources which far outstrip its own needs and therefore provides a useful source of export revenue.
The Australian economy reversed a decline in Q3 of 2016 to post a surprise, but welcome, growth of 1.1%. This brought full-year growth in at a healthy 2.4% and chalked up the 25th straight year that Australia has managed to avoid any recession in (a recession being defined as two consecutive quarters in which the economy contracts). The Australian economy will equal the record for recession-free growth, set by the Netherlands between 1982 and 2008 at the end of Q1 2017 – an astounding run of 25 years which has spanned the greatest global recession since the Great Depression of the 1920s.
Q4 growth was credited to bolstered consumer spending and strong export growth with the mining and agriculture sectors faring well in the final quarter. Business investment saw a 2% rise in December, bringing to an end three years of decline which corresponded with suppressed demand for raw materials as the global economy chilled. Commenting on the rise Scott Morrison, Australia’s Treasurer noted: "Our growth continues to be above the OECD average and confirms the successful change that is taking place in our economy as we move from the largest resources investment boom in our history to broader-based growth".
The Australian central bank is predicting 2017 growth of 3%, based on the assumption that commodity prices will continue their recovery.