Australia sees economic growth despite floods
2011-03-02 15:12:58
Australia's economy grew 0.7 per cent in the three months to December, figures showed Wednesday, despite widespread flooding that hit the country's northeast at the end of the year.
The Australian Bureau of Statistics (ABS) said the figure was up from a revised 0.1 per cent in the September quarter, which was the lowest since the depths of the financial crisis.
"While the floods have had some effect on the December quarter estimates, it is expected that the more significant economic impact of this... will be reflected in the estimates for the March quarter 2011," a statement said.
Annual growth remained at 2.7 per cent. The ABS said the biggest contributor was private spending on machinery and equipment, and inventories.
Australian Treasurer Wayne Swan has warned floods that swamped northeastern mining, farming and tourism areas for several weeks from late December, followed by a huge cyclone in February, will force growth into reverse in the March quarter.