Australian economy survives for 26 years sans recession

The economy of Australia has not a witnessed recession in the last 26 years, an unrivalled accomplishment in a world still hurting from a financial crisis.

The Australian Bureau of Statistics released data on 6 September which revealed that the economy of Australia had grown in the three months ending June for a 104th consecutive quarter sans a recession.

Australian economy rose by 0.8 percent in the latest quarter, beating the 0.3 percent growth witnessed in the March quarter.

About 50 percent of the growth was said to be because of consumer spending, as there were more consumers owing to increase in the country’s population. Other factors were growth exports and increased government spending.

Scott Morrison, the Treasurer, said that payrolls had grown by 0.7 percent in the latest quarter and 2.1 percent for the year, indicating more people in employment as well as higher earnings.

He was quoted by Associated Press as saying that improving the wages and earnings of Australian workers continues to be their most crucial challenge. Morrison said that as the labour market continues to gain strength, he was of the belief that improvement could be expected in wages.

Akin to many commodity-exporting countries, Australia has benefited from a credit boom to match with home prices since the financial trouble.

The Bank of International Settlements, representing 60 central banks, had cautioned in June that surging household debt would impede its continuing economic development, which is largely dependent on household spending.

Mark Melatos, Sydney University economist, expressed concerns that nationals of Australia cutting down spending to repay debt could mar the remarkable run of growth of the country’s economy.

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