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March quarter National Accounts



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TREASURER

PRESS RELEASE v NO.

EMBARGO

STATEMENT BY THE TREASURER, THE HON. P.J. KEATING, MP

MARCH QUARTER NATIONAL ACCOUNTS

. Today's March quarter National Accounts record the second successive quarter of growth and suggest Australia is beginning to make the transition to steadily expanding output and employment.

Net exports again contributed strongly to the growth in the quarter as they did for the December quarter to produce a contribution to GDP for the year of 3.7 per cent.

In fact in all but one of the last seven quarters net exports have made a positive contribution to growth.

While the news is encouraging it should be remembered that unemployment and other lagged indicators will respond to the growth with a delay.

Overall, today's release shows the prospects for future growth are encouraging.

It also confirms that the progress Australia is making on inflation is broadly based.

The non-farm implicit price deflator - a broad measure of price changes in the domestic economy - fell 0.3 per cent to produce a rise for the year of only 3.9 per cent.

While lower export prices continue to hamper our terms of trade performance Australia continues to record remarkable success in boosting exports and cutting imports.

Over the 12 months to the March quarter the volume of exports has grown more than 10 per cent while the volume of imports fell nearly 9 per cent.

On the general recovery front the stock cycle turnaround added strongly to growth contributing 1.2 per cent for the March quarter following a small contribution in the previous quarter.

CANBERRA May 30 199 1 I COMMON WEALTir l jj

' PARLIAMENTARY LIBRARY

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