According to the Australian Bureau of Statistics (ABS), the nation’s economy grew 0.5% in seasonally adjusted terms in Q2 2019 and 1.4% through the year.
Commenting on the statistics, ABS Chief Economist, Bruce Hockman, said: “The external sector drove GDP growth this quarter, while growth in the domestic economy remains steady. Net exports contributed 0.6 percentage points to growth this quarter, reflecting strong exports of mining commodities. Strength in mining related activity was seen across a number of measures in the economy.”
Mining gross-value-added increased 3.4% with strong production of coal and liquefied natural gas. Mining profits rose by 10.6% driven by strong export growth and a continued rise in the terms of trade. Mining investment rose 2.4%, with increases in investment in machinery and equipment.
Government spending was the main contributor to growth in domestic final demand, reflecting ongoing delivery of services in disability, health and aged care.
The household sector remained relatively subdued, with a 0.4% growth in household expenditure. While dwelling investment continued to decline, falling 4.4% during the quarter.
Compensation of employees (COE) grew 1.3%, due to rises in the number of wage and salary earners and wage rate. COE growth was driven primarily by the Health Care and Social Assistance industry.
The household saving ratio was lower at 2.3.