MALCOLM Turnbull will have a skip in his step after annual economic growth accelerated to 3.1 per cent, enforcing his election mantra of “jobs and growth”.
The national accounts released on Wednesday showed the economy grew by a strong 1.1 per cent in the March quarter, and grew by 3.1 per cent in the 12 months to March.
The growth comes from growth in exports (which increased by one solid percentage point) and household consumption (which contributed a 0.4 percentage point boost).
The Prime Minister said there were strong signs in the accounts.
“So far, so good,” he told reporters in Brisbane.
“We are seeing strong growth in jobs but we are seeing, however, signs that we cannot be complacent.”
He said the strong growth figures didn’t happen by accident and required a clear economic plan and strong economic leadership.
However, the strong result lessens the need for a further cut in official interest rates.
The result of 1.1 per cent was surprising and well above expectations of 0.7 per cent.
An AAP survey of eight economists forecast economic growth to be 0.9 per cent in the March quarter.
The Australian dollar surged towards 73 US cents on the news. At 11:35 AEST the Australian dollar was trading at 72.86 US cents, up from 72.38 US cents before the data was released.