Oz economy defies disasters

FLOODING and cyclones knocked Australian GDP at the start of 2011, but the country has bounced back with strong figures released yesterday.

Consumer spending and mining exports both increased, driving 1.2 per cent growth in the second quarter.

There are challenges ahead though.

“The Australian economy has increasing depended for growth on the export of natural resources, largely to Asia,” said Carole Bain of the Economist Intelligence Unit. “For next year, there will be concern in Australia about the expected slowdown in China’s demand.”