Australian economy is still staying strong

AustraliaThe Australian economy remains strong and has accelerated its pace of growth in the last quarter of 2010, just before severe natural disasters that struck the country early this year. The Gross Domestic Product (GDP) of Australia increased by 0.7 percent on a quarterly basis and thus the economy switches to a higher speed after the third quarter marked a minimum growth of 0.1 per cent. The data of Statistical Office in Sydney surpassed market expectations for GDP growth of 0.6 percent. Initial estimates for the third quarter showed growth of 0.2 percent. Compared to the last quarter of 2009 GDP increased by 2.7 per cent against an expected growth rate of 2,6 per cent. The consumption expenditure of households increased by 0.4 percent during the quarter and 2.8 percent annually. Investment in housing also increased by 0,4 percent. The stability of the Australian economy led to the discovery of 330 thousand new jobs in the country last year, while unemployment fell to 5%. Unemployment rates in other developed economies like the U.S. and eurozone, are nearly twice as high. The last quarter of last year was the eighth in a row, within which GDP grows but at the beginning of this year North-East Australia hit by severe floods seriously and cyclones, which are expected to slow economic growth.
Any pause will be temporary, however, because exports of Australia continues to grow because of strong demand for raw materials mined in the country from developing economies in Asia such as India and China. The Australian dollar cheaper for a second day against the U.S., in today’s session, losing 0.4 percent. At 9:40 pm local time the pair AUD / USD traded at $ 1.0097 per Australian. At the end of last year’s Australian currency, which is among the five most traded in the world, rose to a record $ 1.0238. The Australian currency has become more expensive than the U.S. dollar for the first time on November 5, 2010 in response to the decision of the Federal Reserve to inject another 600 billion dollars into the banking system of the United States. The Australian central bank left unchanged its key interest rate yesterday a level of 4.75 per cent.

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