The Australian dollar have a fresh eight month high (Photo ABC News)
The Australian economy has surprisingly grown by 0.4 percent in the March quarter, a government report revealed last week.
Australia has not had a recession since the early 1990s. Most analysts expected it to have its first recession in recent times, but in now surprisingly growing due to stronger-than-expected export figures, economists said.
The result gave the Australian dollar a new eight month high at 82.36 US cents, up from 80.69 cents on June 2nd close, while the share market was up to 0.52 percent at noon.
Savanth Sebastian an economist from Commonwealth Securities, said that figures from GDP had established Australia to be in a position as one of the world’s strongest developed economies.
“If you look at developed nations around the world, they’re all negative and quite weak, yet here we are with an actual expansion,” he said to Sky News.
However, some economists said the Australian Economy is still facing a hard time ahead, with huge falls expected in employment, business investment, and company profit reports.
Su-Lin Ong a senior economist from RBC Capital Markets revealed that there was still a possibility that Australia’s economy could face a recession later this year.
She told Dow Jones Newswires that the global recession is probably only just starting to bear down on Australia. She further said “I still think there is a risk that one or two of the next three or four quarters will be negative.”
The Australian government has boosted the economy from recession worries by puting more than AU$ 50 billion dollars (US$ 41 billion) into their economy since late 2008.
Source: AFP
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