Australia’s economy burst back into life during the final three months of 2016 with ABS figures indicating that GDP increased by 1.1 per cent during the quarter.

“After shrinking during the third quarter of last year, Australia’s economy was surprisingly buoyant during the December 2016 quarter,” commented Shane Garrett, HIA Senior Economist.

“Today’s figures show that growth in the economy is being supported by a broad-based mix of factors – infrastructure-based public investment is really starting to fire up, while exports are benefitting from a favourable international backdrop,” explained Shane Garrett.

“Not surprisingly, the record levels of new dwelling construction reached during 2016 continue to act as a big plus for economic growth. The huge volume of new dwellings commenced last year will continue support a large amount of activity on the ground for most of this year.”

“Most encouraging of all is the fact that today’s investments in infrastructure and new dwellings will plant the seeds of stronger economic growth over the coming decades. More homes mean that more workers and employees can be supported, while an enhanced stock of infrastructure will greatly expand the long term horizons and possibilities for Australia’s economy,” concluded Shane Garrett.

In seasonally-adjusted terms, GDP increased by 1.1 per cent during the December 2016 quarter and was 2.4 per cent higher than the same period a year earlier.

Dwelling investment was up by 1.2 per cent during the quarter – and 5.6 per cent higher than a year previously.

See also:

Construction and renovations propel economy

New home sales make late 2016 charge

OECD says Australia must lift interest rates to cool housing market