March 04, 2011 – Recently, Australian Treasurer Wayne Swan positively declared that the nation’s economic growth remains impressive despite the drastic and injurious weather changes and failing economies abroad. Australia still stood out to be independent in dealing with their problems and coping to regain what has been lost in the economy.
An official data has been released which noted that in December 2010, the domestic economy increased by at least 0.7% during the last quarter and a total annual growth of at least 2.7% despite the impact of wild weather on the economy.
It has been noted that just recently, coal sales were affected by the Queensland floods but despite, that there is still a strong rise in exports which helped the rise in gross domestic product of 0.7%. Key rail lines also ended operation last December which also reduced coal supply by around 1.02 billion US dollars. This incident takes a heavy toll on the budget in terms of reconstruction and lower activity according to Swan.
The treasurer pointed out that the quarter’s growth was due to pick up in machinery, equipment investment, and rebuilding of inventories.
However, Swan mentioned that floods in eastern Australia and cyclone Yasi would definitely have an effect on its economy and are expected to have a contraction in the first quarter of 2011.
Swan sadly noted that there will be a downfall in the first quarter of the year by one percent but there is nothing to worry about since a rebound is expected in the following quarters.
The treasurer said that natural calamities will affect the affected companies in terms of their profits which would flow to the federal budget.
But the treasurer is optimistic that labor will help in returning the budget to its surplus state hopefully in the year 2012-2013. Thus we can hope to see Australia regain back to its glorious state.
