Tuesday, June 2, 2009

The "Miracle" Down Under

WSJ reports:

Australia's A$1.1 trillion economy grew in the first quarter of 2009, defying a capitulation in global trade and crunched confidence, and for now sidestepping a technical recession.

Australia's economic slowdown so far appears mild compared with other developed economies but any jubilation is set to be brief as Australia's quarter of growth hinged almost entirely on a positive shift in the country's trade accounts, offsetting a massive slump in business investment and profits, with a terms of trade plunge set to weigh heavily on the economy through 2009.

The average measure of gross domestic product rose 0.4% in the first quarter of 2009 from the fourth quarter of 2008 and rose 0.4% from a year earlier, the Australian Bureau of Statistics said Wednesday.

Source: ABS.GOV.AU