Australia’s gross domestic product (GDP) has grown by 1% in the first quarter of 2018, allowing the economy to expand at the fastest annual rate in two years.
The nation’s GDP rose from the revised 0.5% in the final quarter of 2017 ending December.
The country has now entered it’s 27th year of expansion with recession, with Australia’s annual growth reaching 3.1%, up from the final quarter results of 2.4%.
Australia anticipates that the recent growth is due to mining commodity exports.
“Production of coal, iron ore and liquefied natural gas showed strong increases,” remarked the Bureau of Statistics.
Half of the nation’s GDP was made up of exports, with around a third accounted for by government spending.
However, despite the economy’s expansion, there are concerns around global trade and household consumption.
“While recent data does point to an acceleration in March-quarter GDP growth, there have been numerous growth spikes in Australia to around 1 percent, quarter-on-quarter, in recent years only to be followed by a cooling again,” stated Shane Oliver, Chief Economist at AMP, Reuters reported.
“Uncertainty remains around the outlook for consumer spending: Household debt is high, banks are tightening lending standards, wage growth and inflation remain low and will pick up only gradually, and house prices are falling.”