Australia economy expands 1.2 percent in second quarter, fastest pace in 3 years

Australia economy grows at fastest pace in 3 years

CANBERRA, Australia — Australia’s economy grew at its fastest pace in three years in the second quarter as demand from China and elsewhere in Asia boosted exports of iron ore and other commodities.

The figures released Wednesday show the economy expanded 1.2 percent in the April-June quarter from the previous quarter, accelerating from revised growth of 0.7 percent in the first quarter.

Australia weathered the global economic downturn better than most developed countries, helped by a 42 billion Australian dollar ($38 billion) stimulus package and China’s ravenous demand for raw materials.

Bob Cunneen, senior economist with AMP Capital Investors, said the numbers were surprisingly robust.

“This sort of GDP result is exceptional and won’t be the rule, but it also underscores how well Australia is doing with the China growth story,” he said.

Australia’s S&P/ASX 200 stock index jumped 1.9 percent to 4,488.20, outpacing gains in Asian markets.

Treasurer Wayne Swan hailed the growth as “an outstanding set of figures.”

“It’s a strong outcome when you consider the shaky conditions that exist in countries like the United States and in Europe,” Swan told reporters. “Finance ministers elsewhere and prime ministers elsewhere would kill for a set of outcomes such as these.”

The Australian Bureau of Statistics figures also showed that gross domestic product — the value of all the goods and services produced by the economy — rose 3.3 percent for the year through June.

The statistics bureau said second quarter growth was driven by a 5.6 percent increase in exports and a 1.6 percent increase in household expenditures. Construction, mining and professional and technical services also increased production in the second quarter.