Photo by: Bloomberg
PERTH (miningweekly.com) – The resources sector continues to underpin economic growth in Australia, as evidence by new data from the Australian Bureau of Statistics (ABS), which has shown that the Australian economy grew by 0.5% in the June quarter.
Chief economist for the ABS Bruce Hockman said that 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,” he added.
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, Hockman said.
The Minerals Council of Australia’s CEO Tania Constable noted that the ABS data highlighted the need for the federal government to move quickly on productivity enhancing reforms across the economy.
“Improvements in enterprise flexibility are necessary if Australia is to unlock the growth potential across current and future mining projects. It is essential Australia has a modern workplace system that supports productivity to sustain economic growth and the prosperity of all Australians.
“The government must deliver on its commitment to cut the unnecessary regulatory burden on Australian companies, reduce taxes so Australia has an internationally competitive tax rate and deliver on promises to lower energy costs for businesses,” she said.